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TMI Blog2017 (4) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... nce placed in the case of HANIL ERA TEXTILES LTD. Versus COMMISSIONER OF CENTRAL EXCISE, RAIGAD [2013 (6) TMI 680 - CESTAT MUMBAI] - appeal dismissed - decided against Revenue. - E/840, 821-822/2009 - A/60567-60569/2017-EX[DB] - Dated:- 6-4-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Sh. Harvinder Singh, AR for the Appellant Sh. Sudeep Singh, Advocate for the Respondent ORDER Per Devender Singh These appeals have been filed by the Revenue on a common issue; hence, these are being taken up together. 2. The brief facts of the case are that the respondents are manufacturer of cotton yarn under tariff heading 5205 of the Central Excise Tariff. They paid duty on Domestic T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal's judgment in the case of Hanil Era Textiles Ltd. Vs. CCE, Raigad. 2014 (312) ELT 324 (Tri. Mumbai). 4. The issue involved in this case is whether the benefit of Notification No.23/2003-CE dated 31.03.2003 is available to the clearances of cotton yarns made by the respondents in the DTA. 5. Ld. AR reiterated the grounds of appeal and said that since like goods are exempted for non-EOUs, if no cenvat credit is taken, condition (iii) of Notfn. No.23/2003-CE is not available. 6. We find that the show cause notice has sought to deny the benefit of condition no. (iii) of the Notification no.23/2003-CE which reads as below: (iii) the goods manufactured and cleared by the unit other than EOU are not wholly exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o cenvat credit is availed on the inputs used in the manufacture of the said goods, whereas in terms of Notification No. 29/2004 dtd 9.7.2004, the rate of duty applicable on the said goods is 4%. In view of this it is observed that cotton yarn manufactured and cleared by a unit other than export oriented undertaking is not wholly exempt from the payment of duty but is conditionally exempt under Notification No.30/2004. Therefore, the condition no. (iii) against Sr. No.3 of Notification No.23/2003-CE that the cotton yarn, if manufactured and cleared by a unit other than export oriented undertaking is not wholly exempt from duties of excise or chargeable to nil rate of duty also stands fulfilled in the instant case. Therefore appellants were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty (other than NIL rate or total exemption) while Sr. No. 4 is applicable if such goods are chargeable to NIL rate or are totally exempt. Thus for applying Sr. No. 3 or 4, two conditions are to be determined viz. (1) whether the goods are produced or manufactured wholly from the raw materials produced or manufactured in India, and (2) whether the goods are chargeable to NIL rate or some other rate. In case of NIL rate, Sr. No. 4 would be applicable, otherwise Sr. No. 3 would be applicable. 14. In the present case, for the units (other than 100% EOU), two options are available viz. pay 8/4% excise duty (without any condition) or NIL rate of excise duty provided no Cenvat credit is taken on the inputs or capital goods used in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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