2010 (2) TMI 1226 - AT - Central Excise

Revenue's Appeal Rejected in E.O.U. Excise Duty Case

The Revenue's appeal against the dropping of proceedings for non-payment of Additional Duties of Excise by an E.O.U. was rejected. The court upheld the ... - Issues involved: Appeal filed by Revenue against dropping of proceedings initiated by show cause notice u/s 3(1) of Central Excise Act, 1944 for non-payment of Additional Duties of Excise by E.O.U.Facts of the case:- Respondent, a 100% E.O.U., manufactures various types of yarn and clears goods for export and DTA.- Duty liability on goods produced in E.O.U. includes Excise Duty and Addl. Duty of Customs.- Addl. Duties of Excise levied on certain textiles under relevant Acts.- Assessees availing benefits of Notification No. 8/97-C.E. for clearances up to 29-2-2000.Contestation and adjudication:- Respondent contested show cause notice, arguing against liability to pay Cess.- Adjudicating authority dropped proceedings citing earlier orders set aside by CESTAT.- Revenue appealed against dropping of proceedings.Revenue's contentions:- Impugned order incorrect due to rescission of Notification No. 55/91 and issuance of Notification No. 24/2003 exempting duty for E.O.U. goods.- Board's Circular clarified duty liability for E.O.U. goods cleared into DTA.- Notification No. 8/97 exempts finished products from excess Excise Duty if sold in India.- Commissioner failed to consider Board's clarification and relevant notifications.Respondent's submissions:- Successfully challenged earlier orders before Tribunal.- Issue of Additional Duties of Excise already decided in favor of assessee by Tribunal.Judgment:- Bench found issue already decided in favor of assessee in previous orders.- Upheld impugned order based on previous decisions and Apex Court judgment.- Revenue's appeal rejected.Conclusion: The appeal filed by Revenue against dropping of proceedings for non-payment of Additional Duties of Excise by E.O.U. was rejected based on previous decisions and legal interpretations.