2012 (12) TMI 465

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....rocuring indigenously manufactured goods free of excise duty under exemption Notification No. 22/2003-C.E., dated 31-3-2003 and its predecessor notifications. The period of dispute is from April 1999 to March 2006. During this period, the appellant procured free of basic excise duty and AED (GSI), 8088000 litres of HSD from Indian Oil Corporation Ltd. (IOCL), Panipat, under Notification No. 22/2003-C.E., dated 31-3-2003 and its predecessor Notification No. 1/95-C.E., 37/99-C.E. and 37/2000-C.E. against CT-3 Certificates. With effect from 1-3-1999, by Section 133 of the Finance Act, 1999, Additional Excise Duty (AED) of Rs. 1/- per litre was introduced on HSD, which was enhanced to Rs. 15/- per litre w.e.f. 1-3-2005. 1.2 During the p....

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....ts predecessor notifications exempt from the whole of duty of excise, leviable under Section 3 of the Central Excise Act, 1944 and the whole of AED (GSI) and AED (T & TA) leviable under Additional Duties of Excise, (Goods of Special Importer) Act, 1957 and Additional Duties of Excise (Textile & Textile Articles) Act, 1978 respectively, the goods specified in the notification acquired by a 100% EOU for use in the manufacture of final products for export, that the term "duty of excise" in the notification also covers the AED on HSD leviable under Section 133 of the Finance Act, 1999, as this AED is also to be collected as duty of excise, that in this regard he relies upon Board's Circular No. 807/4/2005-CX., dated 10-2-2005 wherein it has bee....

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....self it has been clarified that - since clearances under bond are not synonymous with clearances under exemption, the judgment of Hon'ble Supreme Court in case of UOI v. Modi Rubber Ltd. (supra) would not be relevant, and that since in this case the goods have been cleared by IOCL, Panipat availing duty exemption under Notification No. 22/2003-C.E. and its predecessor exemption notifications which exempt only the duty of excise leviable under Section 3 of Central Excise Act, 1944, AED (GSI) and AED (T&TA), these exemption notifications cannot be extended to AED leviable on HSD under Section 133 of Finance Act, 1999. He, therefore, pleaded that there is no infirmity in the impugned order passed by CCE (Appeals). 5. We have carefully ....

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....ise leviable under Finance Act, 1979 merely because this expression is not qualified by - "payable under the Central Excise Act". This case is on a better footing for the Revenue, as the Notification No. 22/2003-C.E. and its predecessor notification are very specific about the levies covered by the exemption - "duty of excise leviable under Section 3 of Central Excise Act, 1944", "Additional duty of excise leviable under Additional Duties of Excise (Goods of Special Importance) Act, 1957" and "Additional duty of excise leviable under Additional duties of Excise, (Textile & Textile Articles) Act, 1978". The language of these notifications leaves no doubt about the duties leviable under different Acts which are exempt under these notification....