2018 (10) TMI 12

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.... 3. The appellants were an Export Oriented Unit (EOU) during the relevant period engaged in the manufacture of grey cotton fabric falling under chapter heading 5208 of central Excise Tariff. They cleared grey cotton fabric to the Domestic Tariff Area (DTA) on payment of duty as calculated under Sl.No.5 of Notification No.23/2003-CE dated 31.03.2003 for the entire period except period covered by Appeal No.E/672/2007. For this period (covered by Appeal No.E/672/2007) the duty was paid as per Sl.No.2 of the notification. This Notification No.23/2003 provides exemption to specified goods produced in the EOUs and the applicability of this notification to the appellant is not in dispute. Sl.No.2 of this notification provided an exemption of 50....

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....tification, the "aggregate duty" means aggregate of - (i) The duty of excise specified in the First Schedule of Central Excise Tariff Act, 1985 (5 of 1986); and (ii) The duty of excise specified in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957)." In view of the aforesaid exemption, the duty of 8% BED and 4% AED (GSI) paid by them was correct and proper since the notification mentions about apportionment of duty between BED and AED (GSI). It is clear that no AED (T & TA) was payable by the appellant. (2) Notification No.24/2003 exempted excisable goods from the whole of duty of excise under Sec.3 of Central Excise Act and Sec.3 of AED (GSI) and Se....

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....king into account the exemptions available in the following words. "30. In view of aforesaid analysis and reasoning, in my considered view, the submissions advanced for and on behalf of the petitioners is full of force and since the issue in question relating to determination of Additional Duty of Customs (CVD), chargeable under Sec.3 of the Customs Tariff Act, 1975 and applicability of exemption Notification No.50/2003-CE, regarding goods clearances in DTA by 100% EOU unit i.e, the petitioners, is already settled by Hon'ble Supreme Court in Hyderabad Industries by following and affirming its earlier verdict in Thermax Pvt Ltd. In my considered view the issue is no more res integra in view of the verdict of the Constitution Bench o....

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.... on the goods cleared by the appellant during the relevant periods as per the show cause notice. Notification No.23/2003-CE exempts the appellant from payment of Central Excise duty leviable under Sec.3 of the Central Exise Act. Sl.No.5 of this notification also exempts the goods from the AED (GSI). There is a separate exemption Notification No.24/2003 which exempts the goods cleared from EOUs from AED (GSI) as well as AED (T & TA) but it does not apply to DTA clearances. Notification No.18/1996 provides exemption to the goods from AED (T & TA) while Notification No.32/2004 exempts the goods from AED (GSI). At this stage it will be profitable to examine the way Central Excise duties are levied. On goods produced by 100% EOUs and cleared to ....