2011 (10) TMI 50

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hands of the processor - no merits in the appeals - Tax Appeals stand dismissed - decided against the revenue
Mr. M.V. Ravindran, Dr. P. Babu, JJ. Represented by : Shri Rajendra Nagar, SDR for Appellant Shri Paritosh Gupta, Advocate for Respondent Per : Mr. M.V. Ravindran; This appeal is filed by the Revenue against the Order in Appeal No. 151/2006 (Ahd-I) dated 27.07.2006. 2. The relevant facts that arises for consideration are that, the adjudicating authority had denied the benefit of transitional cenvat credit to the respondents herein, as applicable vide Notification No. 35/2003-CE (NT) dated 10.04.2003, despite there being declarations filed by the assessee before the authorities. Aggrieved with such an order of disallowance o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... , we find that the issue involved in this case is whether the grey fabrics in the hands of dealer is input or finished goods. This Bench vide final order No.A/106/2007-WZB/Ah-bad dated 27.12.2006 as reported in 2008 (223) ELT 51 (Tri. AHmd.), has clearly held that the Notification No. 35/2003-CE (NT) envisages that credit not merely for stock of the goods with traders but also in respect of the stock lying with the processors and cenvat credit cannot be denied to the assessee. As rightly pointed out by the learned counsel, that this judgment was appealed before the Hon'ble Gujarat High Court and their Lordships in their order has held as under :- "[Order per : K.S. Radhakrishnan, C.J. (Oral)]. - Heard learned counsel for the Revenue. The f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rics purchased will be undoubtedly and undisputedly an inputs in the hands of the processor. Merely because a dealer has been introduced in between the manufacturer of inputs and the manufacturer of finished goods, the nature of these products as input cannot undergo a change. Notification No. 35/03 has already envisaged credit not merely for stock with the traders but also in respect of stock lying with the processors. 3. That being the factual and legal situation, we see no reason to take a different view than that of the Tribunal. We, therefore, see no merits in the appeals and the same deserve to be dismissed. 4. The Tax Appeals stand dismissed." 6. Since the issue of benefit of Notification No. 35/2003-CE (NT) dated 10.4.2003 have a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X