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TMI Blog2017 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufactured from textile yarns on which the duty has been paid - It also stands clarified in the said notification that explanation was added shall have retrospective effect - denial of benefit unjustified - appeal allowed - decided in favor of appellant. - Appeal No.E/918/2008 (DB) - Final Order No. 62048/2017 - Dated:- 13-9-2017 - Mrs. Archana Wadhwa, Member (Judicial) And Mr. Devender Singh, Member (Technical) Ms.Surbhi Sinha, Advocate for the appellant Shri Tarun Kumar, AR for the respondent ORDER Per Archana Wadhwa: After hearing both sides, we find that the appellant is engaged in the manufacture of Acrylic Mink Blankets falling under Chapter 63 of the First Schedule to the Central Excise Tariff Act, 1985. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ics, whether or not processed, on which the appropriate duty of excise leviable under the First Schedule to the said Central Excise Act and the Additional Duties of Excise (Goods of Special Importance) Act read with any notification for the time being in force or the additional duty of customs leviable under section 3 of the Customs Act, 1975, as the case may be, has been paid. 3. The Revenue entertained a view that inasmuch as the appellants are manufacturing blankets started from yarn and no processed fabrics comes into existence prior to manufacturing of the blankets, the condition of notification cannot be held to be satisfied. Accordingly the show cause notice dated 6.5.2003 was issued raising the demand of ₹ 23,07,272/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty of yarn, the benefit has to be extended. 6. The adjudicating authority did not find force in the appellant s contention and held that in terms of condition No.6, the goods have to be manufactured form knitted fabrics and inasmuch as the Tribunal s decision in the case of Shital Fibres Ltd. vs. CCE, Chandigarh-2001 (129) ELT 489 (Tri.-Del.), no knitted fabrics comes into existence at intermediate stage, during the course of manufacture of blanket, it has to be held that the blankets have not been manufactured form the fabrics. It stands manufactured directly from the yarn. As such, he denied the benefit and confirmed the demand and imposed penalty to the extent of ₹ 4.50 lakhs. The said order of the original adjudicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured alongwith processing of fabrics and weaving or knitting or crocheting of fabrics within the same factory, the conditions of the notification have to held as having been satisfied if the said goods are manufactured from textile yarns on which the duty has been paid. This is not the Revenue s case that the goods have not been manufactured in the appellant s factory from the yarn, which has discharged appropriate duty leviable on them. It also stands clarified in the said notification that explanation added shall have retrospective effect. In such a situation, to deny the benefit of the notification in question, would be against the legislative intent and it must be observed here that the lower authorities while raising unnecessar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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