TMI Blog2009 (7) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 as the cotton ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther 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 manufactured or processed goods made using raw material obtained without payment of duty under the said rule has to be exported. The Rule has not stipulated that the person who obtained the raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants 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 correlation being possible, there shall be no question of raising a demand against the appellants for violation of Rule 19(2) of said Rules. The appellants shall be given a reasonable opportunity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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