9911796707
TMI Blog2007 (9) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... finished goods without payment of duty by availing exemption under Notification No. 06/2002-C.E., dated 1-3-2002. Revenue proceeded against the respondents proposing denial of the benefit of the said Notification. The Joint Commissioner demanded duty of Rs. 10,74,244/- along with interest under Section 11AB. He allowed Cenvat credit to the tune of Rs. 7,35,535.51. Penalty of Rs. 3,38,700/- was imposed under Section 11AC. Penalty of Rs. 10,000/- was imposed on Shri T. Vijaya Bhaskar, Director, of the Company under Rule 26 of the Central Excise Rules, 2002. The respondent approached the Commissioner (Appeals) against the Order-in-Original dated 29-3- 2004. The Commissioner (Appeals) allowed the appeal of the Respondent by setting aside the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eared by them and had to clear them on payment of duty w.e.f. 26-9-2002. 3. The learned Advocate, Shri V.J. Sankaram reiterated that the Commissioner (Appeals relying C.B.E.C. Circular No. 680/71 /2002-CX dated 10-12- 2002 has correctly held that the Respondents are entitle for the benefit of exemption Notification No. 6/2002-C.E. dated 1-3-2002 in respect of HDPE/PP Granules cleared during the period from 26-9-2002 to 28-2-2003. 4. We have gone through the records of the case carefully. The Respondents use duty paid HDPE/PP Granules. The PP Granules are first converted to monofilament and thereafter the monofilament is used to manufacture ropes. Similarly intermediary products strips are produced and thereafter they are used to man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial is not liable to Excise duty or such duty is nil. Therefore the Board modified its earlier Circular dated 15-5-1995 which held that nil duty paid goods or fully exempted should be deemed to be goods on which duty of Excise has been paid. 5. The above clarification dated 26-9-2002 was used against the assessees in the context of Notification No. 14/2002 dated 1-3-2002. The above Notification provides concessional rate of duty at 12% Adv. for textile fabrics manufactured by a composite mill or a manufacturer engaged in the processing of fabrics along with weaving or knitting or crocheting of fabrics within the same factory from textile fibres or yams respectively on which the appropriate duty has been paid. In respect of composite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, I hold that the appellants are eligible to claim exemption in respect of their final product (HDPE rope) manufactured out of duty paid granules. Board's Circular dated 26-9-2002 is not applicable in the facts of the case. The impugned order, demanding duty is not tenable." It is further seen that the respondent had not availed Cenvat credit on the duty paid granules purchased from suppliers of raw materials. We agree with the finding in the impugned order that the mere fact that intermediate product is exempted from payment of duty does not in any way affect the claim of the respondents for exemption from duty in respect of plastic ropes. The Apex Court in the Dhiren Chemicals case (supra) referred to "raw materials". In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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