Compounded levy under excise notification was held to absorb additional textile excise liability as well.

Under the compounded levy scheme in Notification No. 33/2001-Central Excise, payment of excise duty at a fixed rate per metre length per shift was treated as full discharge of the duty liability on production during that shift. Reading the notification together with the charging provision of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 and the Board's circular under Section 37B, the fixed duty payment was held to absorb the additional excise liability as well. The earlier cited decision was followed, and Additional Duties of Excise (T&TA) was not separately recoverable under the compounded levy arrangement.

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Issues: Whether duty paid under the Compounded Levy Scheme under Notification No. 33/2001-Central Excise covered the liability to pay Additional Duties of Excise (Textiles and Textile Articles) Act, 1978.

Analysis: The notification permitted an assessee to pay duty of excise at a fixed rate per metre length of the machine per shift and stated that such payment would be in full discharge of liability for the duty leviable on production during the shift. The relevant charging provision under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 levied an additional duty of excise on goods already chargeable to excise, and the Board's circular under Section 37B recognized that duties of excise chargeable under other enactments, where the Central Excise Act and rules applied, formed part of the excise levy framework. On a combined reading of the notification, the charging provision, and the circular, the fixed duty payment was held to absorb the additional duty liability as well. The cited prior decision was treated as governing the issue.

Conclusion: The liability to pay AED (T&TA) was not separately recoverable from the assessee under the compounded levy arrangement.

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