A.K.SIKRI,J. - (1.) All these appeals are taken up together for hearing as the issue involved in these appeals is identical, though divergent view is taken by the different Benches of the Tribunal. Issue pertains to grant of benefit of exemption under Notification No. 14/02 -CE and 15/02 -CE both dated 01.03.2002. These notifications give the benefit of concessional rate or nil rate of duty to the knitted garment manufacturers on certain conditions. One of the conditions is for full exemption is that knitted garments are exempt if manufactured out of knitted fabrics on which ppropriate duty of excise has been paid and no cenvat credit of duty paid on inputs or capital goods has been taken. If Cenvat credit is taken, the duty is at concessional rate.
(2.) The Revenue has taken the position that the benefit of these notifications is available only when the garments have been manufactured from the duty paid fabrics and in those cases where the fabrics has not suffered excise duty, it cannot be said that the appropriate duty of excise has been paid thereon and consequently the benefit of notifications would not be available.
(3.) The stand taken by the assessees, on the other hand, is that planation II to the exemption notifications creates a legal fiction, specifying that for the purpose of conditions of this notification, textile yarn or fabrics shall be deemed to have been duty paid even in the absence of production of documents evidencing payment of duty.;