Additional excise duty on DTA clearances by an EOU was held not leviable after the amended notification.

A 100% export oriented unit clearing goods into the domestic tariff area was held not liable for additional excise duty after the amendment to Notification No. 8/97-C.E. inserting the words "or under any other law for the time being in force" was applied in line with the binding apex court ruling. The Tribunal also noted that Notification No. 55/91-C.E. exempted the goods from additional excise duty under the Additional Duties of Excise (Textiles & Textile Articles) Act, 1978. The demand was therefore unsustainable and was set aside.

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Issues: Whether a 100% export oriented unit clearing part of its goods in the domestic tariff area was liable to pay additional excise duty in view of Notification No. 8/97-C.E., Notification No. 55/91-C.E. and the amending Notification No. 11/2000-C.E.

Analysis: The Tribunal followed the binding apex court ruling on the effect of the amending notification inserting the words "or under any other law for the time being in force" into Notification No. 8/97-C.E. It was held that, after the amendment, additional excise duty was not leviable on DTA clearances by an EOU. The Tribunal also noted that the goods stood exempted under Notification No. 55/91-C.E. from payment of additional excise duty under the Additional Duties of Excise (Textiles & Textile Articles) Act, 1978.

Conclusion: The demand of additional excise duty was unsustainable and the assessee succeeded on the issue.

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