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TMI Blog2016 (12) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to the exemption in notification no. 14/2002-CE does not find sustenance - demand of duty along with interest, as well as imposition of penalty also set aside - appeal allowed - decided against Revenue. - APPEAL NO: E/3568/2004 & E/1373, 2423 & 3309/2005 - ORDER No.A/94002-94005/16/EB - Dated:- 28-7-2016 - Shri M V Ravindran, Member (Judicial) And Shri C J Mathew, Member (Technical) Shri D.B. Shroff, Sr. Advocate and Shri M.H. Patil, Advocate for the assessees Shri Ajay Kumar, Jt. Commissioner (AR) for Revenue Per: C J Mathew: All these appeals pertain to eligibility for concessional and nil rate of duty under notification no. 14/2002-CEW dated 1 st March 2002. M/s Hindoostan Spinning and Weaving Mills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of penalty by the lower authority on M/s Pulgaon Cotton Mills. When the other matter were called, our attention was drawn by both sides to the appeal on the identical issue as others. This appeal is also taken up for disposal. 5. The issue in brief is that the assessees in all these were availing the benefit of notification no. 14/2002-CE dated 1 st March 2002 which exempted payment of duty on specified final products subject to discharge of appropriate duty on the intermediates/inputs. The condition that appropriate duties were to be discharged was interpreted to deny exemption to such final products in which the intermediate/inputs were not considered as having paid duty. 6. Consequent upon the decision of the Hon ble Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -CE both dated 1 st March 2002. The facts in question, as noted in the decision supra are: 2. The Revenue has taken the position that the benefit of these notifications is available only when the garments have been manufactured from the duty paid fabrics and in those cases where the fabrics has not suffered excise duty, it cannot be said that the appropriate duty of excise has been paid thereon and consequently the benefit of notifications would not be available. The stand taken by the assessees, on the other hand, is that Explanation II to the exemption notifications creates a legal fiction, specifying that for the purpose of conditions of this notification, textile yarn or fabrics shall be deemed to have been duty paid even in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/2002 and 15/2002 create legal fiction and that was the precise purpose for which this explanation was added. It is trite law that a fiction created by a provision of law is to be given its due play and it must be taken to its logical conclusion [Union of India v. Jalyan Udyog - (1994) 1 SCC 318 = 1993 (68) E.L.T. 9 (S.C.)]. 8. Accordingly, the question of determination whether duty has been paid on the intermediate products or input products is no longer relevant. It was on this very same ground that Commissioner of Central Excise, Mumbai - I confirmed the demand in order-in-original no. 10/M-I/2004 dated 31 st August 2004 impugned before us by M/s Hindoostan Spinning and Weaving Mills Ltd. The impugned orders against which Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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