2014 (10) TMI 15

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..... r the Respondent. ORDER The appellant is a manufacturer of readymade garments classifiable under Chapters 61, 62 and 63 of the Schedule to the Central Excise Tariff Act, 1985. On the ground that the appellants were liable to pay central excise duty on 47,479 pieces of readymade garments lying in their warehouses as on 28-02-2011 and cleared subsequently without payment of duty, proceedings were .....

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..... ated 28-7-2011 to incorporate sub-rule 1(A) in the said Rule. For case of understanding the provision of sub-rule 1(A) of Rule 4 of CER, 2002 is reproduced below :- "(1A) Notwithstanding anything contained in sub-rule (1), every person who gets the goods, falling under Chapter 61 or 62 or 63 of the First Schedule to the Tariff Act, produced or manufactured on his account on job work, shall pay th .....

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..... epartment of Revenue, New Delhi, vide Instruction D.O.F. No. B-1/3/2011-TRU, dated 25-3-2011 issued certain clarifications on changes made at the time of passing Finance Bill 2011. At Para 3.3 of the said Instructions, the C.B.E. & C. for Sl. No. 10 on the issue/query raised by the Industry has provided clarification, which is reproduced below :- 10 What is the status of Finished Goods in the fa .....

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..... nabling the manufacturers to claim Cenvat credit on inputs or inputs contained in goods lying in stock as already provided for in Rule 3(2) of the Cenvat Credit Rules, 2004." 4. The lower authorities have taken a view that because warehouse was a registered premises and the readymade garments were lying in the registered premises, the appellant could not have cleared them without payment of .....

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..... f the assertion by the learned counsel that the goods in the warehouses on 28-2-2011 had actually been received from job workers under documents showing nil rate of duty and appellant was covered by the Board's instruction, we consider that appellant has a prima facie case in their favour. 5. Under these circumstances, we consider the request by the appellant that matter may be remanded with .....

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