9911796707
TMI Blog2005 (4) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,450/- and imposition of a penalty of equivalent amount, by the Asst. Commissioner of Central Excise (subject matter of Appeal No. 2585/04). 2. The appellants herein are engaged in the manufacture of yarn, fabrics etc. falling under Chapters 52 55 of the Schedule to the CETA, 1985. For the manufacture of the yarn and fabrics etc. they have a factory in Elphinstone Road at Mumbai. They have another mill known as Spring Mill wherein grey fabrics are manufactured out of yarn spun therein. During the period 3-9-96 to 2-6-98, Notification No. 29/96-C.E., dated 3-9-96 extended deemed credit to grey fabrics at the time of payment of duty on processed fabrics. In that Notification Composite Mill was defined in Explanation I as "Composite Mill" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fabrics manufactured from unprocessed fabrics not woven in the same composite mill...................". The department was of the view that the benefit of deemed credit under this Notification was not available to the appellants herein by virtue of the fact that the grey fabrics have been manufactured in the same Multi Locational Composite Mill and therefore the processed fabrics would not get the benefit of deemed credit, although under Notification 14/02 dated 1-3-2002 the above was available to composite mill who cleared grey fabrics without payment of duty. Show Cause Notice dated 25-3-2003 proposing to denial of benefit of deemed credit at the rate of 26% of the duty payable on processed fabrics of cotton, was issued. Notice proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f "composite mill" during the entire period and further for the reason that Notification covers independent processors as well as composite mills, and therefore benefit under Notification will be available for some categories of persons i.e. independent processors. We, therefore, hold that the benefit of Notification No. 6/2002 is not admissible to the appellants. 7. However, the alternative plea that since duty has been paid on yarn contained in the grey fabrics, the assessees are eligible to actual Cenvat credit under Rule 2(1)B of the Cenvat Credit Rules 2002 has force. There is no dispute about the amount of deemed credit. There is no dispute that the deemed credit taken by the appellant is less than the actual duty paid on the yarn c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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