2014 (12) TMI 1122

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....ay any excise duty. They had indicated that they were claiming exemption under Notification No. 10/97-C.E., dated 1-3-1997 for the purpose of CVD payable under Section 3(3) of Customs Tariff Act, 1975. Revenue was of the view that this notification issued under Section 5A(1) of Central Excise Act, 1944 would not apply to clearances from the factory of the appellant which was a 100% EOU. For this Revenue was relying on the proviso (i) under Section 5A(1) and proviso (ii) under Section 3(1) of the Central Excise Act. Based on such argument Revenue sought to deny the exemption claimed by the applicant on the clearances of the goods. After adjudication, there is a demand of Rs. 62,81,173/- confirmed against the applicant along with interest and....

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....n goods imported into India, CVD under Section 3(3) of Customs Tariff Act, 1975 is calculated by extending benefit of notifications like 10/97-C.E. issued under Section 5A such benefit for purpose of calculating CVD component in aggregate duties of customs will be available to them. The ban in the proviso to Section 5A(1) is on availing exemption from such aggregate duties of customs and not for the purpose of calculating the CVD component payable on like goods when imported into India. Thus the argument is that for the purpose of calculating CVD duty under Section 3(3) of Customs Tariff Act payable by an EOU, Notification No. 10/97-C.E. will apply as in the case of any importer of such goods importing goods into India from outside India. A....

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....icable to goods cleared from 100% EOU. In the case of Notification No. 10/97-C.E., there is no specific mention. Therefore, such notification should not be applied at any stage of calculation, be it for calculating the CVD component in aggregate duties of Customs or be it for availing exemption from such aggregate duties of customs levied as excise duty. In this regard, she relies on Section 5A(1) which reads as under :- SECTION 5A. Power to grant exemption from duty of excise. - (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be ....