Parity between excise exemption notifications extends CT-2-based domestic clearance benefit to 100% EOUs without duty

A 100% Export Oriented Unit was held entitled to clear goods into the Domestic Tariff Area without duty against CT-2 certificates because Notification No. 43/2001-C.E. (N.T.), issued under Rule 19 of the Central Excise Rules, 2002, was treated as pari materia with Notification No. 47/94-C.E. (N.T.) under the earlier regime. The tribunal followed the earlier line of decisions recognising the same benefit for EOUs and upheld the lower appellate authority's grant of exemption, so the Revenue's challenge failed.

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Issues: Whether a 100% Export Oriented Unit was entitled to clear goods to the Domestic Tariff Area without duty under Notification No. 43/2001-C.E. (N.T.) on the strength of CT-2 certificates.

Analysis: The benefit claimed under Notification No. 43/2001-C.E. (N.T.) was held to be available to EOUs because the notification issued under Rule 19 of the Central Excise Rules, 2002 was treated as pari materia with Notification No. 47/94-C.E. (N.T.) issued under Rule 13 of the earlier Central Excise Rules. The earlier line of decisions allowing EOUs to clear goods against CT-2 certificates was followed, and the lower appellate authority had relied on that parity in granting relief.

Conclusion: The notification benefit was available to the assessee, and the Revenue's challenge failed.

Final Conclusion: The order granting exemption benefit to the 100% EOU was upheld, and the Revenue appeal was rejected.

Ratio Decidendi: Where a later exemption notification is pari materia with an earlier notification under a corresponding excise rule, the benefit already recognised for EOUs under the earlier regime may be extended to the later one on the same footing.

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