RAYMOND LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Whether, a manufacturer who manufactures goods falling under Tariff Heading 55.06 from duty paid inputs falling under Heading 55.01 of the Central Excise Tariff Act, 1985 ('CET' for short) is entitled to the exemption under Notification No. 30/2004 dated 9/7/2004 is the basic question raised in this petition.

(2.) According to the revenue, Serial No. 10 of the Notification No. 30/2004 specifically provides that the inputs used in the manufacture of goods falling under Heading 55.06 must be 'staple fibres' and therefore the exemption is available only if the inputs used are 'staple fibres' falling under Heading 55.03 and the exemption would not be available if the inputs used are goods falling under Heading 55.01.

(3.) According to the petitioners, the Notification No. 30/2004 read with the new tax regime for the Textile sector announced by the Hon'ble Finance Minister on 8/7/2004 clearly shows that the exemption is not restricted to the duty paid inputs falling under Heading 55.03 but it is also applicable to the duty paid inputs falling under Heading 55.01.