2010 (12) TMI 332

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....sed on it under Rule 25 of Central Excise Rules, 2002. The appellants are a 100% EOU engaged in the production and export of tractors and tractor parts. A part of its finished goods, tractor parts, are cleared in bulk to assessee's own DTA unit, where they are packed and then cleared in retail packages on payment of duty determined in accordance with Section 4A of the Central Excise Act, 1944. After due process of law the Commissioner found that the assessee had availed inadmissible exemption in terms of Notification No. 23/2003-C.E., dated 1-3-2003 in respect of clearances of tractor parts made during the period March 2007 to February 2008. Moreover, it had paid CVD on such clearances with reference to MRP. The impugned goods were not subj....

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....assessee was required to discharge duty liability on clearances of such goods to DTA, paying an amount equal to the aggregate customs duty payable on import of like goods read with relevant notification. In the instant case the assessee had paid on invoice value of the impugned clearances, the customs duty, the CVD worked out on the basis of MRP and had not paid the SAD. SAD was payable as no sales tax was paid on clearances of the impugned goods. We find that the appellant had raised the plea of revenue neutrality in payment of duty pursuant to the demand confirmed, as a ground to challenge the demand. The Commissioner had rejected this plea citing the following head note to the Apex Court's judgment in the case of Dharampal Satyapal v. CC....

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....resent appeal has no revenue implication. The dispute relates to classification of beverage bases/concentrates manufactured by the Respondent, which are supplied to bottlers, who in turn use the same as raw material in the manufacture of beverages. The duty payable in respect of beverage bases/concentrates is modvatable. Since the duty payable by the Respondent is modvatable, there is no revenue implication. The issue of classification is therefore, academic. No purpose would be served by entertaining the present appeal." In the Jamshedpur Beverages (supra) case the apex court dismissed the appeal filed by the Revenue with the following observations : "3. It is stated by the counsel appearing for the assessee that the excise duty....