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TMI Blog2016 (3) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... ed products, if manufactured and cleared by a unit other than a hundred per cent, export-oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to Nil rate of duty; and b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a),(b),(c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997- 31 March, 2002. The revenue had no objection regarding the condition (b). However, it was felt that the appellants are not fulfilling condition (a) and therefore, not entitled to the benefit of said notification. Accordingly, a notice was issued seeking to reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, tapes or strips on which the appropriate duty of excise leviable under the Fist Schedule, the special duty of excise leviable under the Second Schedule or as the case may be the additional duty leviable under the Customs Tariff Act, 1975, has already been paid." It was argued by them that any manufacturer within the domestic tariff area would be entitled to avail of the said exemption and it does not matter if they themselves were able to avail the said exemption or not. It was argued that the condition (a) is meant to be applied in general sense and was a condition based on law and no evidence needs to be provided. They relied on the decision of Hon'ble Supreme Court in the case of SRF Ltd. - 2015 (318) ELT 607. They also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation, it is clear that the said exemption is available to finished goods, only if such finished products fulfill the condition of the notification 6/2006-CE. It is seen that the Commissioner (A) has held that notification 6/2006-CE is irrelevant for the purpose of availing benefit of notification 13/98-CE. "I have carefully gone through the case records and the various submissions made by the appellant. I find that two different independent notifications bearing No. s13/98-CE dated 2/6/98 and 6/2002-CE dated 1/3/2002 have been issued with an intention to cover two different situations. It is not disputed that the appellant is a 100% EOU manufacturing Synthetic Ropes by using Tapes procured under CT3. Also it is not disputed that the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of notification 13/98-CE it is essential to establish that such goods are otherwise exempt. The respondents had sought to establish that they are entitled to benefit of notification 6/2006-CE. In the instant case the raw material is obtained without payment of duty. The expression such finished products for the condition (a) relates to the product manufactured by the respondent. There is no doubt that the respondents are procuring their primary raw materials, tapes, without payment of any duty. As a result they would not be entitled to the benefit of Notification No.6/2002 as they would not have fulfilled the condition 34 specified in the said notification. Therefore, they would not have been eligible for availing of Notification No. 13/9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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