Tribunal rules in favor of appellant on duty levies for EOU clearances

The Tribunal ruled in favor of the appellant on both issues. It held that NCCD is not leviable on clearances to 100% EOU under Notification No. 22/2003-C.E. The Tribunal also found that no duty is payable on clearances of POY to job workers for manufacturing grey fabrics, based on the relevant legal provisions and precedents. The appellant's appeals were allowed, emphasizing the binding nature of circulars on departmental officers and the Tribunal's interpretations.

---

---

Issues:
1. Whether NCCD is leviable on clearances to 100% EOU under Notification No. 22/2003-C.E.
2. Whether duty is payable on clearances of POY to job workers for manufacturing grey fabrics.

Analysis:
1. The main appellant, a manufacturer of POY, was availing exemption under Notification No. 22/2003-C.E. for clearances to 100% EOU. The Revenue contended that NCCD is leviable as the exemption does not cover NCCD. The appellant argued that NCCD cannot be demanded for goods ultimately exported, citing relevant legal provisions and Circular No. 641/32/2002-CX. The Tribunal referred to Circular No. 641/32/2002-CX and held that NCCD is not payable on goods exported under bond. The appellant's appeal was allowed based on the latest view held by the Tribunal and the binding nature of circulars on departmental officers.

2. Regarding clearances of POY to job workers for manufacturing grey fabrics, the appellant relied on Rule 4(5)(a) of the Cenvat Credit Rules to argue that no duty is payable. The Revenue defended the orders passed by the adjudicating authority and cited a judgment in a similar case. The Tribunal considered the arguments from both sides and referred to a previous judgment by the same Bench in a related case. The Tribunal held that NCCD is not leviable on captive consumption of goods, as per the precedent set by the Tribunal in a previous case. The appeals filed by the appellant were allowed based on the Tribunal's interpretation and the binding nature of circulars on departmental officers.

In conclusion, the Tribunal ruled in favor of the appellant on both issues, holding that NCCD is not leviable on clearances to 100% EOU under the relevant notification and that no duty is payable on clearances of POY to job workers for manufacturing grey fabrics based on the applicable legal provisions and precedents.

---