2003 (3) TMI 519

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....alia, Nylon Filament Yarn for the manufacture of which they imported Caprolactum from abroad; that for the purpose of levying additional customs duty under Section 3 of the Customs Tariff Act they claimed the benefit of Notification No. 305/79-C.E., dated 4-12-79 which provided partial exemption from payment of duty, if manufactured from duty paid Benzene; that the Asst. Commissioner under Order-in-Original No. 29/2001, dated 1-8-2001, confirmed the demand of duty holding that the benefit of Notification No. 305/79 was not available to the Caprolactum; that the Commissioner (Appeals) also under the impugned Order has rejected their appeal. The learned Advocate, further, submitted that as per Section 3 of the Customs Tariff Act any article w....

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....e duty is paid by a particular manufacturer; that the Appellants is contending that the rate of duty at which GSFC pays duty in respect of Caprolactum should be made available to the Caprolactum imported by them; that in terms of Notification No. 305/79-CE the Central Government has exempted Caprolactum manufactured from Benzene (derived from raw naphtha) on which appropriate amount of duty of excise has already been paid from so much of the duty of excise leviable thereon as is in excess of 23% ad valorem; that the benefit of the said notification was available subject to the condition that Caprolactum has been manufactured out of Benzene which has suffered excise duty; that as in the case of Caprolactum imported from abroad no central exc....

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....he time being leviable on the like article, if produced or manufactured in India. The rate of duty leviable on excise goods is set forth in the Schedule to the Central Excise Tariff Act. Further, the Central Government has been empowered under Section 5A of the Central Excise Act to grant whole or partial exemption from payment of duty. Such exemption may be without conditions or with conditions specified in the notification. It is settled law that the benefit of exemption notification will be available only if the conditions stipulated in the Notification are fully satisfied. The benefit of Notification No. 305/79-CE was available subject to the conditions that Caprolactum is manufactured from Benzene derived from raw naphtha on which appr....