MANGAL TEXTILE MILLS (I) PVT. LTD. Vs. CCE

JUDGEMENT

(1.) In these appeals the short issue that arises for consideration is whether the appellant is entitled to the benefit of Notification No. 29/96 dated 3.9.96 and claim deemed credit in respect of the inputs used in the manufacture of the grey fabric, which is being processed by the appellant.

(2.) In the order under challenge in Appeal No. E/2434/2001 -D such deemed credit was denied to the appellant for the reason that, appellants' final product coming under sub -heading 5801.22 is not covered by the above -mentioned notification. The learned Counsel for the appellant brought to our notice corrigendum dated 3.9.96 to Trade Notice No. 91/96 by which final products falling under Heading Nos. 5801 and 5802 were included in the list of final product in Notification No. 29/96. When the heading 5801 as such is included, there is no justification for denial of benefit claimed for the reason that sub -heading 5801.21 is not specifically mentioned. The revenue has no case that the final product will not come under Heading 5801. We, therefore, uphold the contention of the appellant and hold that the appellant is entitled to the benefit of Notification No. 26/96. However, the refund of the amount claimed by the appellant will be subject to verification by the Assistant Collector on the question of unjust enrichment.

(3.) In the order impugned in Appeal No. E/2092/01 -D the appellant was denied the benefit of Notification No. 29/96 for the reason that grey fabric as such is not included as an "input" in the Notification qualifying for such benefit. It is the contention of the appellant that the input referred as item No. 2 in column 2 of the notification have gone into in the manufacture of grey fabric. Therefore, the appellant is entitled to deemed credit on the inputs referred under colum No. 2. This contention of the appellant is supported by Board's Circular No. 243/77/96 dated 3.9.96. The relevant portion of the notification reads as under: - -