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TMI Blog2016 (12) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... d basis took place before clearance of grey fabrics on which exemption was claimed. Therefore, payment was made before the stage of exemption. Similarly, on payment of duty on the input (yarn) the assessee got the credit which was never utilized. That before utilization, the entry has been reversed which amounts to not taking credit. Hence, in this case, both the conditions are satisfied. Hence, item no. 1 of the table to Notification No. 14/2002-C.E would apply and accordingly the grey fabrics would attract nil rate of duty. Respondent not required to pay an amount equal to 10% - appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the respondent submits that similar issue came up before the Tribunal in the case of Dr. Writer's Food Products Pvt.Ltd.-2009 (247) ELT 391 (Tri.-Mum.). Therefore, the impugned order is to be upheld. 4. We also take note of the facts that a similar issue came up before this Tribunal in the case of Dr. Writer's Food Products Pvt. Ltd. wherein the facts are as under: 2. The issue for consideration before us is whether reversal of Cenvat credit taker on cocoa beans and utilized in both the dutiable as well as exempted product after the clearance of the exempted product absolves the appellants of the liability to pay 10% of the total price of the exempted product in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2004. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Act, payment of duty on yarn had to be at the spindle stage. However, when we come to the Exemption Notification No. 14/2002-C.E. the requirement was that exemption on grey fabrics was admissible subject to the assessee paying duty on yarn before claiming exemption and subject to the assessee not claiming CENVAT credit before claiming exemption. The question of exemption from payment of duty on grey fabrics arose on satisfaction of the said two conditions. In this case, payment of duty on yarn on deferred basis took place before clearance of grey fabrics on which exemption was claimed. Therefore, payment was made before the stage of exemption. Similarly, on payment of duty on the input (yarn) the assessee got the credit which was n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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