9911796707
TMI Blog2023 (12) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... d 26.6.2001 in procuring the packing materials which are being used in the manufacture of readymade garments and the finished goods are ultimately exported under the scheme. Also, in these circumstances, denying the benefit of Notification No.43/2001-CE(NT) dated 26.6.2001 in procuring the packing materials duty-free alleging violation of Condition 8 of the Notification No.94/2004-Cus. dated 10.9.2004 cannot be sustained. The impugned order is set aside - the appeal is allowed - DR. D.M. MISRA, MEMBER (JUDICIAL) AND MRS. R. BHAGYA DEVI, MEMBER (TECHNICAL) Mr. N. Anand, Advocate - For the Appellant Mr. Neeraj Kumar, AR - For the Respondent ORDER This is an appeal filed against Order-in-Original No.29/2010 dated 30.12.2010 passed by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 2004-2009. He has further submitted that for the purpose of manufacture of readymade garments, they imported raw materials viz., fabrics, trims and embellishments; also, they procured packing materials like plastic covers, corrugated boxes, hangers, etc., indigenously by availing the benefit of Notification No.43/2001-CE(NT) dated 26.6.2001. It is his contention that the appellant has not violated the condition 8 of Notification No.94/2004-Cus. dated 10.9.2004 in as much as the inputs which are imported and used in the manufacture of readymade garments are not the same that were procured domestically i.e., packing materials. Further, it is his contention that all the procedure laid down under Notification No.43/2001-CE (NT). dated 26.6.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Cus. dated 10.9.2004 has been violated, the appellants are not entitled to avail the benefit of Central Excise Notification No.43/2001-CE (NT) dated 26.6.2001 read with Rule 19(2) of the Central Excise Rules, 2002. 7. Before proceeding to analyse the issue, the relevant Condition No.8 of the Notification No.94/2004-Cus. dated 10.09.2004 and the Notification No.43/2001-CE(NT) dated 26.6.2001 relevant for present purpose are reproduced below: Condition No.8 of the Notification No.94/2004-Cus. dated 10.09.2004 Advance licence for annual requirement with actual user condition issued to Star Export Houses Exemption to imports thereunder (8) that the export obligation is discharged within the period as specified in the said licence or within suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his notification shall register himself under rule 9 of the Central Excise No. 2) Rules, 2001; (ii) provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 shall be followed, mutatis mutandis; (iii) the manufacturer or processor shall, while filing declaration under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, also declare ratio of input and output and rate of duty payable on excisable goods to be procured without payment of duty; (iv) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise shall also verify the correctness of the ratio of input and output and other p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the factory of manufacturer or processor; and (c) any waste arising from the processing of the excisable goods may be removed on payment of appropriate duty as if such waste is manufactured in the factory of the manufacturer or processor; (vi) the goods shall be exported on the application in Form A.R.E. 2 specified in the Annexure and the procedures specified in Ministry of Finance (Department of Revenue) notification No. ./2001-Central Excise (N.T.), dated 26th June, 2001 or in notification No. ./2001-Central Excise, dated 26th June, 2001 shall be followed. Explanation I. - Duty for the purpose of this notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said Notification. Further we find that if at all, there is a violation then it is the violation of the Notification 8 No.93/2004-Cus. dt. 10/09/2004 for which only the Customs authorities can initiate action to deny the benefit of Customs duty exemption and not the Excise authorities to demand duty under Section 11A. In the present cases, the Excise authorities have initiated action for violation of Notification No.43/2001-CE dt. 26/06/2001 which is not sustainable in law. Further we find that the decisions relied upon by the learned AR are not applicable in the present case and they are distinguishable on facts. 8.1 Similar view has also been expressed by this Tribunal in the case of Bhilwara Spinners Ltd. wherein the Tribunal at paragr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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