PRATIBHA SYNTEX LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant Tratibha Syntex Ltd. (Unit No. II) are engaged in the manufacture of Grey Knitted Cotton Fabrics (unprocessed), Grey Knitted Cotton Fabrics (Processed) and Readymade Garments of knitted processed cotton fabrics. They are also engaged in the manufacture of yarn and paying appropriate duty of Excise in Unit No. I. They claimed exemption under Notification No. 14/02 -C.E., dated 1 -3 -2002 as amended and 15/02 -C.E., dated 1 -3 -2002 as amended relying on the conditions specified therein. In this appeal, the appellants are challenging the order of the Commissioner dated 11 -2 -2004 which has held as follows : Thus, in the light of above classifications the benefit under the said Notification No. 14/02 -C.E., dated 1 -3 -2002 (S. No. 10 to 13) and 15/02 -C.E., dated 1 -3 -2002 (S. No. 14 and 15) would be available w.e.f. 26 -9 -2002 only when appropriate duty of Excise has been paid on the specified raw material/inputs.

(2.) IT has been pleaded before us that the appellants are rightly eligible for concession contained under Notification No. 14/02 -C.E. against S. No. 10 to 13 to be read with Explanation VII(ii) and also the second proviso which reads as follows : 2. for the purposes of the exemption to processed textile fabrics, specified in the Table against any of the S. Nos. 3, 4, 6, 7, 8, 13 and 16, manufactured by a composite mill (i.e. a manufacturer engaged in processing of fabrics along with the spinning of yarn, from fibres and weaving or knitting or crocheting of fabrics within the same factory) or by a manufacturer engaged in processing of fabrics alongwith weaving or knitting or crocheting of fabrics within the same factory, the condition specified in column (5) against each of the said respective S. Nos. is intended to have been satisfied if the said processed fabrics are manufactured from textile fibres or yarns, as the case may be, on which the appropriate duty of excise leviable under the First or the Second Schedule to the said Central Excise Tariff Act read with any notification for the time being in force or the additional duty of customs leviable under Section 3 of the Customs Tariff Act, 1975 as the case may be, has been paid. In brief they are prepared to pay duty @ 12% although they are deserving the right to claim Nil rate of duty.

(3.) THE impugned order has held that the benefit of notifications would not be available to them w.e.f. 26 -9 -2002 as appropriate duty of excise has not been paid on grey fabrics and processed fabrics. This view of the adjudicating authority stands confirmed by this Tribunal in the case of Sports and Leisure Apparel Ltd. v. CCE, Noida At the same time, we notice that before lower authorities, the appellants have not made their submissions claiming the benefit of exemption relying upon Explanation VII (ii) and also in respect of the second proviso which may make them eligible for claiming a concessional rate @ 12%. As this is a new point arising before us now and which has not been considered by the authorities below, it is directed that the matter be remanded to the adjudicating authority for fresh examination and to pass necessary order in accordance with law, complying with the principles of natural justice.