TaxTMI 
TaxTMI 
2004 (8) TMI 105
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....ayable under the Central Excise Act, 1944 (in short the 'Act'). Appellants also questioned legality of the Notifications issued by the Central Excise authorities for payment of AED on yarn cleared in DTA. 4.The appellants are registered as 100% EOUs engaged in the manufacture of cotton yarn out of indigenous raw materials attracting BED leviable under Section 3 of the Act and AED leviable under Section 3 of the Additional Excise Act. On the basis of exemptions granted by the Central Government from time to time under Section 5A(1) of the Act, Notification No. 55/91-C.E., dated 25-7-1991 was made applicable to their cases for the purpose of exemption. Subsequently, Notification No. 8/97-C.E. dated 1-3-1997 was issued where certain manufacturers like the present appellants were only granted exemption in excess of the amount equal to the duty of excise leviable under Section 3 of the Act on like goods produced or manufactured in India other than in 100% EOUs or a free trade zone if sold in India. Subsequently, the said Notification was amended by Notifications Nos. 21/97-C.E., dated 11-4-1997, 7/98-C.E. dated 2-6-1998 and 11/2000-C.E. dated 1-3-2000. As a result of these amendments....
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....ties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts all excisable goods produced or manufactured in a hundred per cent Export Oriented Undertaking from the whole of the duty of excise leviable under the second mentioned Act. Notification No. 8/97, dated 1-3-1997 (before amendment) - Effective rate of duty on certain goods produced in FTZ or EOU : In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the finished products, rejects and waste or scrap specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and produced or manufactured, in a hundred per cent export-oriented undertaking or a tree trade zone wholly from the raw materials produced or manufactured in India, and allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (c), (d) and (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1st April ....
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....000-CX dated 19-10-2000 F. No. 268/37/2000-CX. 8 Yarn - Leviability of Additional Duty of Excise in respect of DTA clearances of yarns made by 100% EOUs Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject :- Leviability of Additional Excise Duty (Textile and Textile Articles) Act, 1970 in respect of DTA clearances of yarns made by 100% EOUs - Reg. 1. I am directed to state that representations have been received in the Board seeking clarifications as to whether Additional Excise Duty under Textile and Textile Articles Act, 1978 hereinafter referred to as AED (T & TA) is leviable or not on cotton/man-made yarns manufactured and cleared into DTA by a 100% EOU using indigenous raw materials. It has been represented that some field formations are demanding additional duty under the above mentioned Act on goods manufactured and cleared into DTA though there is specific exemption for such goods vide Notification No. 55/91-C.E., dated 25-7-1991 and hence no Additional Duty will be attracted. 2. The matter has been examined. It is observed that as per proviso to Section 3(1) of the Central Excise Act, 1944 g....
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....cturing similar goods from indigenous materials. 6. Thus, it is clarified that w.e.f. 1-3-2000, AED (T & TA) would also be leviable on yarns manufactured by a 100% EOU from indigenous raw materials and cleared into DTA, in addition to the Basic duties under Central Excise Act. Wherever, such AED (T & TA) are not being collected, suitable steps for recovery may be taken expeditiously." 9.Contrary to what has been contended by the Union of India, a bare reading of the Notification No. 8/97-C.E. dated 1-3-1997 and as amended by Notification 11/2000-C.E. dated 1-3-2000 shows that there was clear intention to rationalize the payment of duty by 100% EOUs and others. What is clearly intended relates to the liability of the manufacturer who is 100% EOU to pay the amount which amounts to aggregate of the duties of excise leviable under Section 3 of the Act or under any other law for the time being in force. That clearly indicates that whatever duty of excise was leviable under the Act and any other statute for the time being in force on the like goods produced or manufactured in India by the producer or manufacturer who is not 100% EOU if sold in India. The obvious object was to see t....