2007 (2) TMI 442

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....that the appellants are engaged in the manufacture of reprocessing of plastic materials located in Kandla Special Economic Zone. The final product was being exported by them and part of it was being cleared in the domestic tariff area. As per Section 3 of the Central Excise Act, 1994, the units located in the SEZ are required to pay duty equivalent to duty of customs leviable on like and similar goods when imported into India. Accordingly, when the goods were cleared by the EOU, the total duty of excise constitute the following : (a)     Basic Customs duty portion levied under Section 12 of the Customs Act, 1962 (b)     Additional duty portion levied under Section 3(i) of the Customs Tariff Act,....

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..... In the present case, there is no ambiguity in the language of the notification and exemption is available to all manufacturers who are engaged in the reprocessing of plastic materials. SEZ units cannot be put at a disadvantage as against other units. Therefore, exemptions which are available to units other than SEZ units are equally applicable to them also. It was submitted that duty chargeable under Section 3 of the Central Excise Act relating to units situated in SEZs is in the nature of excise duty and it is only for the purpose of computation that duty equivalent to duties of customs chargeable on like goods, when imported into India is being charged. Therefore, once there is an exemption notification granting exemption from excise du....