TaxTMI 
TaxTMI 
2011 (6) TMI 652
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.... No.570 of 2002. In the said order, the Hon'ble apex Court had directed the adjudicating authority to calculate the duties payable by the appellants in respect of the clearances made in DTA in terms of provisions of Notification No.2/95-CE dated 04/01/95 and in terms of para 9.10 (b) of the Exim policy. 2. Briefly stated the facts of the case are as follows:- 2.1 The appellant, M/s.Virlon Textile Mills Ltd., Tarapur, Thane District, are a 100% EOU engaged in the manufacture of Polyester Texturised Yarn and Polyester Dyed Yarn falling under chapter sub-heading No. 5402.32 of Central Excise Tariff Act, 1985. The said yarn was sold by the appellants in Domestic Tariff Area (DTA) against foreign exchange subject to....
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....p; demand for payment of excise duty equivalent to 50% of the additional duty of Customs leviable under Section 3(1) of the Customs Tariff Act, 1975 or the Special Additional Duty leviable under Section 3A of the said Customs Tariff Act would not arise as the said notification was amended only on 16-9-99 vide Notification No.38/99-CE dated 16/09/99 so as to substitute the reference in the said notification to 'the duties of Customs leviable under section 12 of the Customs Act, 1962' with 'the duties of Customs leviable under the Customs Act, 1962 or under any other law for the time being in force'. 2.4 Thus, the appellant contended that during the period from 08/04/99 to 15/09/99 they were required to pay excise duty only for....
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....Customs and Special Additional duties of Customs in computing the excise duty rate since Section 12 of the Customs Act covered only Basic Customs Duty and not duties leviable under Section 3(1) of Customs Tariff Act, 1975 or Section 3A of the said Customs Tariff Act. 4.2 The said notification was amended vide notification No.38/99 dated 16/09/99 as per which the exemption was restricted to duty in excess of 50% each of the duties to Customs leviable under Section 12 of the Customs Act or any other law for the time being in force. Therefore, with effect from 16/09/99 only, they were liable to pay excise duty equal to 50% of each of the aggregate duties of customs leviable under the Customs Act or any other law for the ti....
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....for these appeals. But the terms of the exemption notification in force during the relevant period granted exemption to all levies in excess of the 50% of the Customs duty leviable under Section 12 of the Customs Act, 1962. The above would show that even though by amendment to Section 3(1) duty liability was increased, the nature and quantum of exemption granted under the notification continued to be the same as it was obtained before amendment to Section 3(1). When proviso to Section 3(1) was amended with retrospective effect, legislature did not think it fit to give such retrospective effect to the amending Notification No. 2/95. Admittedly, the demands in the present cases were for a period prior to 16-9-99, the date on which amendment t....
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....rly known as SAD). The said notification was amended vide Notification No.38/99-CE dated 16/09/99 so as to substitute the words, figures and brackets in the said notification 'leviable under section 12 of the Customs Act, 1962 (52 of 1962) read with any other notification for the time being in force issued under sub-section(1) of section 25 of the said Customs Act' with words, figures and brackets 'leviable under Customs Act, 1962 (52 of 1962) or under any other law for the time being in force, read with any notification for the time being in force in respect of the duty so chargeable'. Therefore, the question of including CVD & SAD rates for computation of excise duty equal to the aggregate of customs duty would not arise....