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TMI Blog2016 (7) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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. The contention of Revenue that assessees are not entitled to the exemption in Notification No. 14/2002-C.E. does not find sustenance - appeal allowed - decided in favor of appellant. - E/3568/2004-Mum and E/1373, 2423 & 3309/2005-Mum - Final Order Nos. A/94002-94005/2016-WZB/EB - Dated:- 28-7-2016 - Shri M.V. Ravindran, Member (J) and C.J. Mathew, Member (T) Shri D.B. Shroff, Sr. Advocate and M.H. Patil, Advocate, for the Assessee. Shri Ajay Kumar, Jt. Commissioner (AR), for the Department. ORDER [Order per : C.J. Mathew, Member (T)]. - All these appeals pertain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 4th July, 2005 of Commissioner of Central Excise Customs (Appeals), Nagpur, setting aside the demand of duty and interest thereon and imposition 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-C.E., dated 1st 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L.T. 3 (S.C.)] which disposed of a batch of petitions dealing with the availment of benefit of exemption under Notification Nos. 14/2002-C.E. and 15/2002-C.E., both dated 1st 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 lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clearly reflected in the Government s own Budgetary Notes extracted above. We, thus, hold that Explanation II to the said exemption Notification Nos. 14/2002 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 N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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