2010 (1) TMI 417

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....8. The demand was confirmed on the ground that the goods cleared to DTA are not exempted and attract duty 16% adv. 3. The Applicants contended that they have not claimed any exemption under Notification No. 6/2006-C.E., dated 1-3-2006, as amended, and in terms of proviso to Section 5A of the Central Excise Act, 1944 on the clearance of the goods to domestic tariff area by an export oriented unit, Additional Duty of Customs shall be reckoned on the effective rate and not tariff rate. They placed reliance on Circular dated 19-2-98 and decision in the case of Himalaya International Ltd. v. CCE, Chandigarh reported in 2003 (154) E.L.T. 580 (Tri.-LB) arid Board's Circular No. 1 /2004-Cus., 5-1-2004. The Applicants also submitted that the demand....

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....d 31-3-2003: "……from so much of the duty of excise leviable thereon under Section 3 of the Central Excise Act as specified in the corresponding entry in column (4) of the said Table." (Subject to relevant condition specified in the Annexure to this Notification and referred to in the corresponding entry in column (5) of the said Table). 6. Section 5A of the Central Excise Act, 1944 provides that: "If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette exempt generally either absolutely or subject to such conditions (to be fulfilled be fore or after removal) as may be specified in the notification, excisable goods of any specified description from th....

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....e facts, circumstances and financial hardship. 9. Further on the grant of stay, Hon'ble Supreme Court in the case of Empire Industries Ltd. v. UOI reported in 1985 (20) E.L.T. 179 (S.C.) held: "...final disposal of the matters take enormously long time and non realisation of taxes for a long time creates an upsetting effect on industry and economic life. Governments are run on public funds and if large amounts are blocked in pending litigation, it becomes difficult for Governments to run and it becomes oppressive to people. Governments' expenditure cannot be made on bank guarantees and securities" In  Asstt. CCE v. Dunlop India Ltd. - 1985 (19) E.L.T. 22 (S.C.)'s case, it was observed: "Grant of stay should be an exception and not....