TaxTMI 
TaxTMI 
2015 (4) TMI 733
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....d in manufacture of an automobile part named Anti Noise Shims chargeable to Central Excise duty under heading 8708. The raw material for this auto component is HR Coils. In course of manufacture of Anti Noise Shims from HR Coils, Steel waste arises, the entire quantity of which was being cleared into DTA. The period of dispute in this case is from 01/3/08 to 31/7/10 and 01/8/10 to 31/3/11. There is no dispute that during this period, the scrap was cleared into DTA and the appellant company were paying full duty under proviso to Section 3(1) of Central Excise Act, 1944 without availing the concessional rate of duty under Notification No. 23/03-CE. The duty being paid by the appellant on the DTA clearances was the Basic Customs Du....
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....ment was of the view that the cess would be leviable third time on the aggregate of the duties of customs i.e. 1st time at 2% + 1% on Additional Customs duty charged on CIF value plus basic customs duty, 2nd time at the rate of 2% + 1% on aggregate of basic customs duty plus Additional Customs duty and 3rd time at the rate of 2% + 1% on the aggregate of duties of customs + 3% of the aggregate. 1.2.3 The third point of dispute is regarding exemption to Special Additional Customs Duty (SAD). There is no dispute that the appellant in respect of their DTA sales have paid Value Added Tax/Sales Tax. In terms of Notification No. 23/03-CE, the goods cleared into DTA are exempt from Central Excise duty equivalent to Special Additional Customs Dut....
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..... CCE, Jaipur II reported in 2013 (290) E.L.T. 372 (Tri. LB), that as regards the question of Basic Customs Duty exemption in respect of scrap under Notification No. 21/02-CUS (Sl. No. 200), in terms of this exemption notification, the melting scrap is fully and unconditionally exempt from duty, that this exemption from Basic Customs Duty to melting scrap is not linked with DTA clearances being made in accordance with para 6.8 (e) or 6.8 (a) of the Foreign Trade Policy or otherwise, that in this case the appellant had made clearances of scrap into DTA by paying full duty leviable in terms of proviso to Section 3 (1) of Central Excise Act, 1944 in terms of which the duty payable in respect of DTA clearances of a 100% ....
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.... this case the goods sold by the appellant into DTA were chargeable to Value Added Tax and VAT has been paid, the SAD exemption has been correctly availed, that in any case in terms of Sl. No. 1 of Notification No. 23/03-CE, the exemption from the part of the Excise Duty leviable which is equivalent to the SAD, is subject to the condition that the goods cleared into DTA have not been exempted by the State Government from the Sales Tax or Value Added Tax and this exemption from SAD portion of the Central Excise Duty is not subject to the clearances being made in accordance with the provision of para 6.8 (a) of the Foreign Trade Policy, and that in view of the above submissions, the impugned order is not sustainable. 4. M.S. Negi, the lear....
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....on the full rate prescribed under proviso to Section 3 (1), the Basic Customs Duty would have to be calculated at the rate applicable to the import of like goods into India, readwith any customs duty exemption notification issued under Section 25 of the Customs Act, 1962 and if in respect of any imported goods, the effective rate of duty is nil, it is the that rate which would have to be adopted and the basic Customs duty component of the excise duty payable on the DTA clearances would be nil. Thus if some goods imported into India are fully and unconditionally exempt from Basic Customs Duty by some exemption notification, while calculating the Central Excise Duty leviable on the DTA clearances of those goods, the Basic Customs Duty would h....