9911796707
TMI Blog2006 (7) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... e would take the same from the file of M/s. West Dinajpur Spinning Mills Ltd. 2. After hearing both sides, we find that the dispute in the present appeals relate to the exemption availed by the Spinning Mills in terms of various Notifications issued from time to time (Notification Nos. 4/97-C.E., 5/98-C.E., 5/99-C.E., 6/2000-C.E.). In terms of the said Notifications issued under Section 5 (a) (1) of Central Excise Act, nil duty is payable in respect of the goods purchased by a registered Apex Handloom Co-Operative Society, The National Handloom Development Corporation or a State Government Handloom Development Corporation, subject to the condition enumerated therein. For better appreciation, we re-produce the conditions stipulated in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce at least 50% hank yarn of the total production of the spinning mill so as to save the handloom industry. Such hank yarns are suitable for use in the handloom sector, the Government of West Bengal Cotton and Small Scale Industry department, vide Notification dated 25-2-94, laid down the procedure for selling of yarn as also the process of fixation of price to ensure proper distribution of the same, with an objective to ensure the distribution of such yarn to the million handloom weavers in the unorganized sector mostly located in Rural areas and at remote places. Two Apex bodies Tantuja and Tantusree were established with the sole objective to cater the raw material requirements of rural handloom weavers. 4. There is no dispute in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants have not taken sufficient care to see that the traders are selling the yam to handloom weavers only. The spinning mill have only produced certificate without ensuring that such yarn is actually being used in the handloom and no steps have been taken by them to the above effect. As such, he has concluded that the second condition is also not satisfied. 6. After hearing both sides, we find that admittedly Tantuja and Tantusree are Apex Handloom Co-Operative Societies and as per Notification issued by the State Government, were required to purchase the yarn from the appellants to ensure their proper distribution. Two conditions of the Notification as regards purchase of goods by the Apex Body and payment by cheque from their o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any adverse inference against the appellants that the goods were being sold by them to other buyers and not to Tantuja and Tantusree. 7. As regards the second condition of the Notification, we find that the appellants have admittedly produced the certificate from the relevant authorities to show that the goods are to be used in the handloom industry. There is no evidence on records to show that the same have been used elsewhere. In fact the Commissioner has observed in his impugned order that it was not possible for the local jurisdictional Central Excise authorities to ascertain the authenticity of such certificate. If that be so, then the certificates are required to be accepted by the revenue. Failure on the part of the revenue to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not require any end use certificate from actual users of the goods. The yarn having been purchased by Tantuja and Tantusree, it was their duty to see the fair distribution of the same to the handloom sector. It is well established by various decisions of the Tribunal that no end use certificate is required to be furnished in the absence of any such requirements built in the notification. Further, the expression for use has been interpreted as intended to be used . Inasmuch the certificate for intended use were issued, and further use of the same being in the hands of Apex body, who are held responsible for distribution, the fact of actual use of the yarn will not effect the appellant s claim to the benefit of the notification. Wherev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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