2012 (10) TMI 942

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....seeds are exported out of India. The rejected seeds and the skin of the seeds (chhilka) are cleared to DTA. The department was of the view that the rejected sesame seeds and 'chhilka' is a manufactured product and would be chargeable to Central Excise duty at the rate applicable in terms of the proviso to Section 3(1) of Central Excise Act, 1944. On this basis, after issue of show cause notice, the Joint Commissioner vide order dated 23-3-2004 confirmed the duty demand of Rs. 5,29,308/- against the appellant in respect of DTA clearances of rejects seeds and chhilka during the period from 2000-2001 to 2001-2002 and beside this imposed penalty of equal amount under Section 11AC. On appeal to Commissioner (Appeals), this order of the Joint Com....

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....s would not attract duty in view of the judgment of the Apex Court in the case of Union of India v. Ahmedabad Electricity Co. Ltd. reported in 2003 (158) E.L.T. 3 (S.C.) and also in view of recent judgment of Hon'ble Allahabad High Court in the case of Balrampur Chini Mill v. Union of India judgment dated 18-5-2012 in respect of the Civil Writ Petition No. 11791 of 2010 and other CWPs, and that in view of this, the impugned order is not correct. 4. Ms. Ranjana Jha, learned Jt. CDR defended the impugned order by reiterating the findings of the Commissioner (Appeals) in it and emphasized that the reject sesame seeds and chhilka obtained in course of de-skinning of seeds are manufactured products attracting Central Excise duty and, hence, t....