AI Drafter 
TaxTMI 
TaxTMI 
2010 (2) TMI 1226
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....;The relevant facts of the case for consideration are as under :- (i) The respondent, M/s. Sanghi Spinners (India) Ltd., a 100% E.O.U., hold the Customs Private Bonded Warehouse Licence No. 8/94. They are also registered with the Central Excise Department and the Registration No. being 03/94. They are manufacturers of 100% Cotton Yarn falling under Chapter Sub Heading No. 5205.11 and 5205.19 of the Central Excise Tariff Act, 1985, PSF/Cotton Blended Yarn falling under Chapter Sub Heading No. 5206.11 and 5206.12 of the CETA, 1985, PSF/Viscose Blended Yarn falling under Chapter Sub Heading 5509.90 of the CETA, 1985 and 100% Polyester Yarn falling under Chapter Sub Heading 5509.21 and 5509.22 of the CETA, 1985.....
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....ng in force. The provisions of the Central Excise Act, 1944 and the rules made thereunder shall, so far as may be, apply in relation to the levy and collection of the Additional Duty of Excise. (iv) The assessees are availing benefits of the Notification No. 8/97-C.E., dated 1-3-1997 as amended for clearances and paying the duties accordingly up to 29-2-2000. The assessees have filed a classification declaration w.e.f. 1-3-2000 claiming exemption under Notification No. 8/97-C.E., dated 1-3-1997 as amended for Cenvat and Nil rate of duty for AED (T&TA) under Notification No. 55/91, dated 25-7-1991. 3. The respondent contested the show cause notice before the adjudicating authority on various grounds. They also contende....
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....n contained in this notification in respect of duty of excise leviable under Section 3 of the said CE Act shall not apply to such goods if brought to any other place in India. The CESTAT Order basing on which Commissioner dropped the proceedings was passed when Notification No. 55/91 was not rescinded and hence the same is not applicable w.e.f. 1-4-2003. (ii) Board's Circular No. 29/2003, dated 3-4-2003 (wherein all the notifications governing EOU/EPZSTP/EHTP Schemes were replaced by certain Notifications w.e.f. 1-4-2003) under Para No. 7(xii) clarified that ..... (a) Notification No. 24/2003-C.E., dated 31-3-2003 has been issued to allow exemption from payment of duty of excise leviable under Section 3 of the CE Act, 1....
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.... is exempt under the respective Act, it has to be collected as a component of CVD when the goods are cleared into the DTA by an EOU. Commissioner has not given any findings on the above clarification issued by the Board in respect of Notification No. 24/2003 while following the ratio of the judgment in the case law cited above, viz. Nahar Industrial Enterprises Ltd. v. UOI. Though the Circular dated 19-10-2000 which is in the nature of clarification to Notification No. 8/97 as amended, issued by the Board has been quashed by the Supreme Court, the Notification is still in force with the relevant amendment and also with the Circular No. 29/2003 which clearly clarified why the AED under respective Acts has been exempted in respect of the EOUs....
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....-2004 by the Commissioner as Notification No. 24/2003 and Circular No. 29/2003 clarified the duty liability of the DTA clearances in respect of E.O.Us which were not the subject matter of the Supreme Court judgment cited above. 4. The learned Counsel appearing on behalf of the respondent submits that they had challenged the Order-in-Original No. 16/2002, dated 10-6-2002 successfully before the Tribunal which was set aside by Final Order No. 1684/2004, dated 1-11-2004. It is the submission that subsequent Orders-in-Original were also set aside by this Bench by Final Order No. 1822/2004, dated 16-11-2004. 5. We have carefully considered the submissions made at length by both sides and perused the records. It is seen that the i....