2009 (7) TMI 962

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..... -  Heard both sides. Shri M.N. Bharathi, ld. Counsel appearing on behalf of the appellants states that the appellants procured cotton yarn under Rule 19(2) of the Central Excise Rules, 2002 and manufactured fabrics therefrom. The said fabrics procured from M/s. Cotton Crafts Exports under Rule 19(2) without payment of duty were ultimately exported. For procurement of the cotton yarn as well .....

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..... p;     **** (2)     Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Commissioner." On a careful perusal of the Rule 19(2) reproduced above, it is seen that manufa .....

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..... the appellants. 4. As such, the impugned order is set aside and the matter is remanded to the original authority with the direction that he shall consider the documents produced by the appellants and examine whether the fabrics exported by M/s. Cotton Crafts Exports can be correlated with the cotton yarn obtained duty free by the appellants and fabrics supplied by them. In the event of such .....

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