Additional excise duty on exported TV sets was held unsustainable because the levy applied only to domestic use.

Additional excise duty was held not leviable on TV sets exported out of India under bond. The Tribunal relied on the departmental circular clarifying that the levy was intended in lieu of licence fee for domestic use of TV sets, and not for goods exported outside India. On that basis, the demand was found unsustainable and was set aside, with relief granted to the assessee.

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Issues: Whether additional excise duty was leviable and demandable on TV sets exported out of India under bond.

Analysis: The exported goods were cleared under Rule 13 of the Central Excise Rules, 1944. The Department relied on the view that additional excise duty remained payable on the exported TV sets. The Tribunal accepted the departmental circular, which clarified that additional excise duty was intended as a levy in lieu of licence fee for domestic use of TV sets and not on TVs exported out of India. In light of that clarification, the demand was held to be unsustainable.

Conclusion: Additional excise duty was not leviable on the TV sets exported outside India, and the demand was set aside. The appeals were allowed in favour of the assessee.

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