NCCD on captive consumption and deemed exports held not payable under excise-linked export and bond clearance rules.

National Calamity Contingent Duty was treated as a duty of excise and held not payable on POY cleared for captive consumption or on removals to 100% EOUs treated as deemed exports. The Tribunal followed its earlier view that NCCD is not leviable where goods are cleared for export under bond or used captively, and relied on Board circulars clarifying that no NCCD applies to goods exported under bond. It also noted that circulars issued under Section 37B of the Central Excise Act are binding on officers, and the impugned orders were set aside.

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Issues: Whether National Calamity Contingent Duty (NCCD) is leviable on removal of POY for captive consumption and on clearances to other 100% EOUs treated as deemed exports.

Analysis: The issue was treated as no longer res integra. The Tribunal followed its earlier view that NCCD, though levied under the Finance Act, 2001, is a duty of excise and is not payable where goods are cleared for export under bond or for captive consumption. It also relied on the Board's circulars clarifying that no NCCD is payable on goods exported under bond, and noted that departmental circulars issued under Section 37B of the Central Excise Act, 1944 are binding on officers.

Conclusion: NCCD was held not leviable on the disputed clearances, and the appeals were allowed by setting aside the impugned orders.

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