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TMI Blog2009 (2) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... to allowing double benefit - appeals by the Department are allowed by setting aside the order of the Commissioner (Appeals) and restoring the order of the original authority – demand confirmed but penalty set aside. - E/1687-1688/2004 - 199-200/2009-SM(BR)(PB), - Dated:- 9-2-2009 - Shri M. Veeraiyan, Member (T) REPRESENTED BY : Shri R.K. Verma, DR, for the Appellant. Shri Ravi Raghvan, Advocate, for the Respondent. [Order]. - These two appeals are against the order of Commissioner (Appeals II) No. 573-754(RM)CE/JPR-II/03 dated 10-12-2003. The appeals were earlier considered the Tribunal and the Tribunal vide order dated 1-11-2004 dismissed the appeals filed by Revenue [2005 (191) E.L.T. 317 (Tri. - Del.)]. Against the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) Respondents have treated the processed fabrics received by them as inputs and laminated fabrics as output and availed deemed credit in terms of Notification No. 30/2000 dated 31-3-2000. 3.2 Similarly, duty paid nylon filament yarn was received and credit taken and knitted man-made fabrics was manufactured and treating the knitted fabrics as semi-processed goods were sent to job workers under cover of challans in terms of Notification No. 214/86 dated 25-3-86 and received the processed fabrics. The job workers namely, M/s. Mordi Textiles and Processors Ltd. and M/s. Suntax Industries (P) Ltd. were operating under compounded levy scheme. The processed fabrics were used in the manufacture of laminated fabrics. Deemed credit was taken on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 241/86. This intermediate product will be used in manufacturing of final product of Ch.- 59.03, so we are undertaking the responsibility of discharging the liabilities in respect of Central Excise Duty leviable on the finished products." It is required to be noted that whether the job workers had paid duty under compounded levy scheme or availed exemption as provided under the Notification No. 214/86-C.E., dated 25th March, 1986 is a question of fact which the adjudicating authority should have taken into account. In any case, when the documentary evidence on record prima facie suggest that no actual amount has been paid at all and the adjudicating authority found that the job workers of processed textile fabrics are not require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Notification No. 214/86 have returned back the same to the respondents under challans by filling part II of the challans under which they have received. The question of paying any duty by the job worker does not arise inasmuch as the processed fabrics was sent to and received from job workers under Notification No. 214/86 and not sent by the job workers under the invoices under Rule 11. The respondents have taken Cenvat credit on the POY and they have utilized the same to pay duty on laminated fabrics. Permitting deemed credit under Notification No. 30/2000 amounts to giving them double benefit. 5.2 He also submits that similar is the situation in respect of credit taken on nylon filament yarn, manufacture of knitted fabrics and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of laminated fabrics, they are eligible to take deemed credit under Notification 30/2000 dated 31-3-2000. Similar is the position in respect of the product starting from nylon filament yarn ending with laminated fabrics. He seeks upholding the order of the Commissioner (Appeals). 7.1 I have carefully considered the submissions from both sides. I have also perused the challans produced by the learned DR in pursuance of the direction contained in the order of the Hon'ble High Court. 7.2 It is a peculiar case where the respondents have procured the duty paid POY and obtained the final products laminated fabrics. Before emergence of the final product, the respondents have sent, under the procedure prescribed under Notification No. 214/86, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.6 Similar is the situation in respect of nylon filament used for manufacture of knitted fabrics which were cleared for job work under notification 214/86 and receiving processed fabrics for use in laminated fabrics. 7.7 Further the deemed credit is subject to fulfilment of Condition (4) of Notification 30/2000 dated 31-3-2000 which reads as under : "4. The provisions of this notification shall apply only to those inputs which have been received directly by the manufacturer of the final products from the factory of the manufacturer of the said inputs under the cover of an invoice declaring that the appropriate duty of excise has been paid on such inputs under the provisions of section 3A of the said Central Excise Act." In the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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