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TMI Blog2009 (6) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... er per : B.S.V. Murthy, Member (T)]. Appellants have a composite textile mill for manufacture of processed fabrics. They also purchase grey fabrics and carry out processing on such fabrics and clear them on payment of duty. They had availed exemption/concessional rate of duty under Notification No. 14/2002 in respect of processed fabrics manufactured out of procured unprocessed fabrics from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of fabrics on which appropriate duty of excise leviable has been paid. The Notification also has an explanation which provides for the purposes of the conditions specified below, textile yarns or fabrics shall be deemed to have been duty paid even without production of documents evidencing payment of duty thereon. The department has denied concessional rate of duty to the appellants on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s view that the fabrics cannot be considered as non duty paid. Further he also drew our attention to the clarification issued by the Board. On the other hand learned DR submitted that the explanation provided for the purpose of availment of Cenvat credit cannot be taken into account for the purpose of charging duty on processed fabrics. He also drew our attention to the decision of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect. Therefore, we feel that prima facie, appellants have made out a strong case in their favour. Further we also take note of the fact that appellants financial position is very week. It was also brought to our notice by the learned advocate that even if the department s case is accepted, since the deemed credit depends upon the rate of duty chargeable on the finished goods, once it is held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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