Tribunal dismisses appeal seeking exemption from Excise Duty, upholding impugned order

The Tribunal upheld the impugned order, dismissing the appeal filed by the assessee seeking exemption from Additional Excise Duty under SSI Notification No. 8/98-C.E. The Tribunal relied on a Supreme Court ruling stating that the exemption did not extend to Special Excise Duty, Additional Excise Duty, or Auxiliary Duty, emphasizing that the Notification only exempted goods from Basic Excise Duty under the Central Excise Tariff Act. Consequently, the appellants were not entitled to the exemption during the disputed period, leading to the dismissal of the appeal.

---

---

Issues:
Interpretation of exemption under SSI Notification No. 8/98-C.E. dated 2-6-98 regarding Additional Excise Duty for coated cotton fabrics.

Analysis:

The appeal was filed by the assessee against the Commissioner (Appeals) order denying exemption from Additional Excise Duty under SSI Notification No. 8/98-C.E. The appellants did not appear despite notice, and the SDR represented the respondent. The Tribunal, consisting of Shri P.G. Chacko and P. Karthikeyan, decided not to delay the appeal filed in 1999.

Upon review and hearing the SDR, the Tribunal found that the issue was settled by the Supreme Court's ruling in UOI v. Modi Rubber Ltd. The Supreme Court held that exemption from excise duty did not extend to Special Excise Duty, Additional Excise Duty, or Auxiliary Duty. The Tribunal highlighted the purpose of the Notification, emphasizing that it exempted excisable goods from the duty specified in the Central Excise Tariff Act, which was Basic Excise Duty, not other forms of excise duty.

Consequently, the Tribunal concluded that the appellants were not entitled to exemption from Additional Excise Duty under the SSI Notification during the disputed period. The impugned order was upheld, and the appeal was dismissed. The judgment was dictated and pronounced in open court by the Tribunal.

---