2007 (2) TMI 42

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....d 2002-2003. In view of the fact, the aggregate value of their clearances during the impugned period exceeded Rs. 3 crores. The show cause notice for short levy has been issued under Section 11A of the Act. There is no plea of time bar in the matter. The plea raised by the assessee is that there was a clarification from Regional Advisory Committee (RAC) meeting of the Vadodara Commissionerate held on 27-3-2003 in response to the query whether the clearance value of the exempted goods for the financial year 2002-2003 is required to be taken into account for deciding the eligibility of exemption during 2003-2004. The Chairman of the Committee replied that the value of exempted goods need not be taken into consideration for calculation of the ....

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.... 4. The learned JDR submitted that short levy has been issued under proviso to Section 11A within time and therefore, the plea raised about wrong circular issued by RAC in existence cannot be a ground to set aside the demands. The plea could have been raised if the demands had been raised for larger period. He submits that if the demands are set aside on the plea of a wrong circular issued by RAC, then the subsistence proviso Section 11A would become otiose. The subsistence proviso cannot be overruled by any wrong circular issued by any authority other than the Board of Central Excise. The circulars issued by Board of Central Excise under Section 370 alone will be binding and not by circulars issued by RAC. He submits that there should be p....

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....eceding year should be taken into account. The appellants during the year 2002-03 which is the year preceding the year in which they availed the ex emption Notification No. 8/2003 cleared refined edible oils which attracted nil rate of duty up to March, 2003. The mere fad that the above goods attracted nil rate of duty does not mean that they were not excisable during the above period. In other words, refined edible oils were very much excisable in 2002-03, even though the same attracted nil rate of duty. Once, the goods cleared are held to be excisable condition (vii) of the Notification No. 8/2003 is attracted. Since the value of clearance of refined edible oils is more than Rs. 7 lakhs, the appellants are not entitled for exemption in 20....