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TMI Blog2011 (4) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... in which case, it can be safely concluded that the deemed modvat credit so availed by the assessee stands reversed at the time of clearances of the grey fabrics. In such a scenario, the confirmation of the demand by denying them the credit, which already stands reversed by way of payment of duty at the time of clearance of grey fabrics, would neither be warranted nor justified. The processed fabrics stand exported or not looses its relevance, once it is admitted that processing houses have paid the duty on the processed fabrics - Decided in favour of the assessee - E/2585 of 2006 - A/725/2011-WZB/AHD - Dated:- 27-4-2011 - Mrs. Archana Wadhwa, Dr. P. Babu, JJ. For Appellant : Shri J.S. Negi, SDR Per : Mrs. Archana Wadhwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the documentary evidence on record to show the claim of the assessee as regards availability of grey fabrics and the subsequent sending of the same to the job workers. 4. In de-novo proceedings, the Commissioner (Appeal) considered the entire evidences on record and came to the finding that grey fabrics, on which the modvat credit was availed by the respondents, were sent by them to their job workers for processing, under the invoices of the assessee, by paying the duty in respect of the same. The processed goods were further cleared by the job workers on payment of duty and ultimately exported. For better appreciation of the reasoning adopted by the Commissioner (Appeal) for setting aside the order of the lower authorities, we reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.03) and these finished goods i.e. processed goods were exported by appellant. Therefore, the appellant had correctly availed the cenvat credit at Sl. No. 1 of the Notification No. 35/2003-CE dated 10.04.2003, and the impugned demand along with interest is set-aside. 5. Revenue, in their memo of appeal have contended that the Commissioner (Appeal) has appreciated the documents for the first time inasmuch as the same were never placed before the Jt. Commissioner. They have further submitted that as per the alert circular issued by the Commissioner on 03.5.2005, M/s. Indrayani Exports Pvt. Limited was non existent/ fake/ bogus unit. They have also contested that the export documents produced by the assessee before Commissioner (Appeal) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty. In fact, the Revenue is not disputing the fact that the goods were sent to the job workers on payment of duty, in which case, it can be safely concluded that the deemed modvat credit so availed by the assessee stands reversed at the time of clearances of the grey fabrics. In such a scenario, the confirmation of the demand by denying them the credit, which already stands reversed by way of payment of duty at the time of clearance of grey fabrics, would neither be warranted nor justified. Further, it also stands recorded by the Commissioner (Appeal) that the processing houses cleared the processed fabrics on payment of duty, on behalf of the assessee. The said fact does not stand disputed by the Revenue in their memo of appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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