M/S. K.S. Industries-Ludhiana vs Cce-Ludhiana
- CitationAppeal No. E/1356/2005-EX [DB]
Ratio decidendi
The rule this decision rests on
The Explanation II to notification no. 14/02-CE, which deems textile yarn or fabrics to be duty paid for the purpose of the exemption conditions without production of documents evidencing payment of duty, is applicable to the grey fabrics used in manufacturing processed knitted fabrics, so that the exemption cannot be denied for want of evidence of duty payment on such grey fabrics; this follows the Larger Bench decision of the Tribunal in Arvind Products Ltd. v. Commissioner, which both sides accepted as deciding the issue.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Order-in-Appeal No. 01-03/Ldh/05 dated 25/01/2005 passed by CCE-Ludhiana]
1. Whether Press Reporter may be allowed to see the Order for Publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether their Lordships wish to see the fair copy of the order?
4. Whether order is to be circulated to the Department Authorities?
M/s. K.S. Industries-Ludhiana Appellant
Vs.
CCE-Ludhiana Respondent
Appearance: Ms. Mansi Garg, Advocate for the appellant.
Shri Ranjan Khanna, DR for the respondent.
Coram: Honble Shri Rakesh Kumar, Member (Technical)
Honble Shri S.K. Mohanty, Member (Judicial)
Final Order No. 51484/2015
Per: Rakesh Kumar
The appellant manufacture Processed-Knitted Fabric out of Grey Knitted Fabric purchased from the market. The point of dispute is as to whether they would be eligible for concessional rate of duty under notification no. 14/02CE (Serial No. 16) which was subject to condition that the Processed-Knitted Fabrics have been made from the fabrics whether or not processed, on which the duty of excise have been paid. According to the department, this exemption is not available to the appellant as the appellant have not produced any evidence to show that the grey fabrics were duty paid. According to the appellant in terms of the Explanation-II to the notification, for the purpose of conditions of the exemption notification, the textile yarn of fabrics shall be deemed to be duty paid without production of documents evidencing the payment of duty. The department, however, not accepting this plea has held that notification no. 14/02 CE is not applicable and on this basis. The Commissioner, Central Excise Ludhiana vide order-in-original dated 25/6/2005 has confirmed the duty demand of Rs. 14,66,856/- against the appellant along with interest on it under section 11AB and besides this, this has imposed penalty of Rs. 3 lakh on them under Rule 3 of the Central Excise Rules, 2002. Against this order of the Commissioner, this appeal has been filed.
2. Heard both the sides.
3. Both the sides are agree that issue involved in this case stands decided in favour of the appellant by Larger Bench Judgment of the Tribunal in the case of Arvind Products Ltd. Vs. Commr. of Ex. & S.T. Ahmedabad reported in 2014 (310) LET 515 (Tri-LB).
4. In view of this, the impugned order is set aside and the appeal is allowed.
(Rakesh Kumar) (S.K. Mohanty)
Member (Technical) Member (Judicial)
Ritu
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