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TMI Blog2018 (6) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... HDPE/PP Ropes of CSH 56. They are also manufacturer of intermediate products viz. High Density Polythelene Monofilament Yarn, Polyproplene Tapes and Strips and processed plastic granules. They also claimed exemption from payment from duty on Ropes in terms of Serial No. 142 of Notf. No. 6/2006 - CE dt. 01.03.2006 as per which the exemption is allowed to HDPE/PP Ropes subject to the condition that they are made from yarn, monofilament, tape or strips on which appropriate duty of excise has already been paid. The Appellant were issued show cause notice on the ground that they are liable for duty on tapes and Yarn and from which the ropes were made as the same were not covered under the criteria of inputs on which appropriate duty has been pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erits the case is covered by the judgment of Tribunal in case of COMMISSIONER OF C. EX. & CUS., GUNTUR Vs. BOMMIDALA FILAMENTS LTD. 2008 (222) E.L.T. 276 (Tri. - Bang.) and therefore there is no reason to demand duty. He also submits that the issue involved is of interpretation and therefore the demand beyond normal period of time is time barred. They have been filing declarations of manufacturing process and exemptions availed by them. 3. Shri D.S. Chavan, ld. Asstt. Commr, (AR) appearing for the revenue reiterates the findings of the impugned order. 4. Heard both the sides and perused the facts of the case. The issue involved is squarely covered by the Tribunal order in case of M/s Bommilda Filaments Ltd. supra. The relevant extract of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .)]. The Apex Court held the word "appropriate" in the context of exemption Notifications means the correct or specified rate of Excise duty and that where an exemption is extended subject to the condition that the "appropriate duty has been paid" on the raw material, then such exemption shall not be available when the raw material is not liable to Excise duty or such duty is nil. Therefore the Board modified its earlier Circular dated 15-5-1995 which held that nil duty paid goods or fully exempted should be deemed to be goods on which duty of Excise has been paid. 5. The above clarification dated 26-9-2002 was used against the assessees in the context of Notification No. 14/2002 dated 1-3-2002. The above Notification provides concessiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion envisaged in the Board's clarification dated 10-12-2002 and the facts in the present case. He has observed :- "In the case of the appellants, the raw material (granules) is duty paid in nature. There is no question of applying the deeming provision. The granules are duty paid. This is accepted fact by the department. Therefore, I hold that the appellants are eligible to claim exemption in respect of their final product (HDPE rope) manufactured out of duty paid granules. Board's Circular dated 26-9-2002 is not applicable in the facts of the case. The impugned order, demanding duty is not tenable." It is further seen that the respondent had not availed Cenvat credit on the duty paid granules purchased from suppliers of raw materials. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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