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TMI Blog2018 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration stands received by way of cheque. There is no further obligation cast upon the assessee to find out the truth, as to whether the yarn supplied by them to various societies, under the direction of the Apex body i.e. NHDC stands actually used by such societies on handloom. An identical issue was considered by the Tribunal in the case of M/s West Dinajpur Spinning Mills Ltd. Vs Commissioner of Central Excise, Kolkata [2006 (7) TMI 390 - CESTAT, KOLKATA] wherein it was observed that there being no further condition as regards the disposal of purchased yarn by the Apex body, revenue’s anxiety to reach the purchaser of the Apex body and the ultimate use of the yarn is beyond the scope of the notification. The yarn having been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y exempted goods falling under headings 5205.11, 5205.19, 5206.11 or 5206.12, from the payment of duty, subject to the condition that they were purchased by a registered Apex Handloom Cooperative Society, the National Handloom Development Corporation or a State Government Handloom Development Corporation and the payment for which is made by cheque drawn by such Cooperative or Corporation on its own bank account. This exemption is also subject to the production of a certificate from the authorized officer of the Handloom Cooperative Society, National Handloom Development Corporation or State Government Handloom Development Corporation, as the case may be, that the yarn is going to be used only on handlooms. 2. The National Handloom Develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition of penalty in respect of the yarn cleared during the period from August, 1998 to January, 2000. 4. It is seen that the said show cause notice culminated into an order passed by the Commissioner vide which he confirmed the demand along with interest and penalty. The said order was appealed against before the Tribunal, who vide their Final Order No.101/2005-NB dated 12.01.2005 observed that inasmuch as the certificates were produced subsequently from NHDC, the condition of the notification stands satisfied and late production of the certificates cannot be held to be reason to deny the benefit of the notification. As regards the second ground, the Tribunal observed that admittedly orders for the supply of cotton yarn were placed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Condition no.16 required production of certificate to that effect, which issue, raised by the revenue in the SCN, stands settled in favour of the appellant, vide the earlier order of the Tribunal. As such the only dispute remains, as to whether the yarn so supplied by the appellant was actually used by the societies or not. 7. As per the revenue s investigation such societies were either non-existence or non-utilized the yarn on handloom or had not received the full quantity of yarn. On going through notification, we find that such yarn was required to be supplied by the assessee on the orders of the National Handloom Corporation subject to production of certificate and the fact that the payment for the same stands made by cheque drawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being no further requirement in the said notification to verify the actual use of the yarn in question, we are not in agreement with the revenue s stand. It is also seen that the notification in question uses the expression for use , which has to be interpreted as intended to be used and not actually used. As observed in the above referred decision of the Tribunal, wherever the notification intended to impose actual user condition, the same stands specifically mentioned in the notification. The yarn having been purchased by Apex body NHDC, it was their duty to see the fair distribution of the same to the handloom sector. No end use condition can be self introduced in the notification. In the absence of such requirement built in the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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