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TMI Blog2016 (12) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... t. We also perused the price list filed by the appellants, countersigned by the merchant manufacturer and also the declarations filed by the merchant manufacturer before the lower authorities wherein it is categorically declared that the prices at which the said processed fabrics are sold in the market, the job worker has to discharge the Central Excise duty. Factually, this position is undisputed by the lower authorities. Since the Central Excise duty payable on the processed fabrics is paid on the value at which the said fabrics are sold by merchant exporter, the question of main appellant getting additional amounts/charges are of no consequence as even if these are included, they may not exceed the value as declared by the merchant manufacturer as it is a common knowledge that sale price will undoubtedly, include all the expenses incurred by merchant manufacturer for manufacturing of the processed fabrics. Appeal allowed - decided in favor of appellant. - E/3856, 3857, 3858/05-Mum - A/93612-93614/16/EB - Dated:- 26-8-2016 - Mr. M.V. Ravindran, Member (Judicial) and Mr. Devender Singh, Member (Technical) Shri Prasad Paranjape, Advocate, for appellant Shri S. Hasij ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is just cleaning of the staines of oil grease etc. when the grey fabrics is manufactured. It is his submission that after scouring the grey fabrics remains grey fabrics only is the ratio laid down by the Tribunal in the case of CCE, Thane vs. Uma Dyeing Printing Mills reported in 1998 (104) ELT 74. It is his further submission that Explanation 2 to Notification 29/96 clarifies that the provisions of Notification shall not apply where processed fabrics itself is used as an input for further processing. It is also his submission that the term processed fabrics is not defined in the said notification. He would submit that the first appellate authority has not recorded any findings on these submissions. As regards valuation of the grey fabrics, it is his submission that appellant has discharged the central excise duty on the processed fabrics on the price at which the merchant manufacturer sells the product in the market. He would take us through the various declarations made by them jointly with the merchant manufacturer. He would submit that in view of this, the question of any amount received as an additional charges is not liable to Excise duty. For this proposition, he r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer. 7. The claim of the Revenue that main appellant has erred in availing the benefit of deemed credit under Notification No. 29/96 is without any merits. The said notification is reproduced. Modvat - Deemed Credit for yarn and fibres of Chapters 51 to 56 - Notification No. 11/96-C.E. (N.T.) -Superseded In exercise of the powers conferred by sub-rule (2) of rule 57A of the Central Excise Rules, 1944 and in supersession of the notification of Government of India in the Ministry of Finance (Department of Revenue) No. 11/96-Central Excises (N.T.), dated the 23rd of July, 1996, the Central Government, hereby declares the following inputs and the final products falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), namely :- Sl. No. Inputs Final Products (1) (2) (3) 1. (i) goods falling within heading No. 51.05 of the said Schedule (ii) goods falling within heading No. 55.01, 55.02, 55.03, 55.04, 55.05, 55.06 or 55.07 of the said Schedule (iii) goods falling within heading No. 51.06, 51.07, 52. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein. (b) 60 per cent of the duty excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), read with any notification for the time being in force, on the final products other than of cotton (not containing any other textile material) declared herein, (II) in case of a manufacturer other than a composite mill, shall be equivalent to the amount calculated at the rate of - (a) 50 per cent of the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), read with any notification for the time being in force, on the final products of cotton (not containing any other textile material) declared herein, (b) 70 per cent of the duty of excise leviable under the Central Excises and Salt Act, 1944 (1 of 1944), read with any notification for the time being in force, on the final products other than of cotton (not containing any other textile material) declared herein, and credit of the declared duty so deemed to have been paid shall be allowed to the manufacturer of the final products, without production o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of this notification shall not apply to final products on which duty of excise leviable under the Central Excises and Salt Act, 1944 or as the case may be, the additional duty leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, has not not been levied or paid or has been short-levied or short paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of the said Central Excises and Salt Act or of the rules made thereunder with intent to evade payment of duty. Explanation I :- For the purposes of this notification, composite mill means a manufacturer, who is engaged in the processing of fabrics with the aid of power alongwith spinning of yarn from fibres and weaving or knitting or crocheting of fabrics within the same factory. Explanation II :- For removal of doubts, it is clarified that the provisions of this notification shall not apply where processed fabric itself is used as an input for further processing. 8. This notification shall come into effect on and from the 4th day of September, 1996. 8. It can be seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the market. We also perused the price list filed by the appellants, countersigned by the merchant manufacturer and also the declarations filed by the merchant manufacturer before the lower authorities wherein it is categorically declared that the prices at which the said processed fabrics are sold in the market, the job worker has to discharge the Central Excise duty. Factually, this position is undisputed by the lower authorities. Since the Central Excise duty payable on the processed fabrics is paid on the value at which the said fabrics are sold by merchant exporter, the question of main appellant getting additional amounts/charges are of no consequence as even if these are included, they may not exceed the value as declared by the merchant manufacturer as it is a common knowledge that sale price will undoubtedly, include all the expenses incurred by merchant manufacturer for manufacturing of the processed fabrics. 11. On merits itself we hold in favour of the appellant. Accordingly, we are not recording any findings on various other submissions made by both sides. 12. Since we are holding in favour of the appellant on merits, the question of imposing or visiting t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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