9911796707
TMI Blog2012 (12) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain items in accordance with the provisions of Cenvat Credit Rules, 2004. The period of dispute in this case is from 2005 to 2010. The appellant were not availing Cenvat credit in respect of Polyester Fibre. During this period, though the tariff rate of duty on the appellant's final product was 16% Adv., Notification No. 29/2004-C.E., dated 9-7-2004 prescribed concessional rate of duty of 4% Adv. and this rate was applicable even if the Cenvat credit of duty paid on inputs and Service tax paid on input services used had been availed. Another exemption Notification No. 30/2004-C.E., dated 9-7-2004 fully exempted final products subject to condition that no Cenvat credit of duty paid on inputs or Service tax paid on input servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h interest on this amount under Section 11AB, and (b) Imposition of penalty on the appellant under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. In course of adjudication proceedings before the Commissioner, the appellant pleaded that they have not taken Cenvat credit of duty paid in respect of polyester fibre and that Cenvat credit has been availed only of the duty paid on the packing materials and of the Service tax paid on services like GTA services for transport of export consignments from factory to the port and as the service of foreign commission agents for procuring export orders, that the waste generated is fiber/yarn waste and since no Cenvat credit has been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Bench was of the view that the matter can be taken for final disposal. Accordingly, the pre-deposit was waived and with the consent of both the sides, the matter was heard for final disposal. 3. Shri Balbir Singh, Advocate, ld. Counsel for the appellant pleaded that there is no dispute about the fact that the appellant have not availed Cenvat credit of duty paid on polyester or any other synthetic yarn used in the manufacture of spun yarn, that there is no question of availing any Cenvat credit on cotton as there is no excise duty on it, that the appellant during the period of dispute were availing exemption under Notification No. 30/2004-C.E., dated 9-7-2004, which provides full duty exemption to the spun yarn subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice there is no such allegation and that in view of this, the impugned order is incorrect and is no sustainable. He, however, pleaded that he has no objection if the matter is remanded for de novo adjudication after ascertaining as to whether any Cenvat credit availed on dyes and chemicals had been used in or in relation to the manufacture of spun yarn. 4. Shri Nagesh Pathak, ld. Sr. Departmental Representative defended the impugned order reiterating the findings of the Commissioner on it. 5. We have carefully considered the submissions from both the sides and perused the records. 6. The appellant manufacture cotton and polyester spun yarn and cotton/polyester blended yarn for which their principal raw material is cotton ..... X X X X Extracts X X X X X X X X Extracts X X X X
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