SEZ Manufactured Goods Exempt from Special Additional Excise Duty and Additional Duty Under Section 3(1)

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....Goods manufactured within Special Economic Zone (SEZ) were challenged regarding applicability of Special Additional Excise Duty (SAED) and Additional Duty of Excise (AED). SC upheld that Section 3(1) of the Central Excise Act, 1944 does not extend to goods manufactured in SEZ. The principal ruling established that since the primary excise duty charge is not applicable to SEZ-manufactured goods, consequential additional duties including SAED (surcharge) and AED (cess) cannot be imposed. The territorial jurisdiction for excise duty purposes excludes SEZ areas, treating them distinct from domestic tariff territory. Appeal dismissed, confirming SEZ's exemption from these duties.....