2026 (7) TMI 1380

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....ising from the order dated 19th March 2024 passed by the Custom, Excise and Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad (for short "the Tribunal") in Customs Appeal No.13205 of 2013:- "(i) Whether in the facts and circumstances of the case, the Respondent is liable to pay the amount of duty foregone on the quantity of input raw material Mixed Metal Brass Scrap used in excess of 'Wastage Norms' fixed by the Norms Committee in terms of Para 6.8(e) of the Foreign Trade Policy 2009-14? (ii) Whether in the facts and circumstances of the case, the Hon'ble CESTAT is right in allowing the appeal of the Respondent?" 3. The brief facts of the case are as under:- 4. The respondent is a 100% Export Oriented Unit ....

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....nsider scope of the non-obstante clause of Notification No. 52/2003-Cus (ibid) in the instant case for material consumed over and above the SION notification issued by the DGFT, Department views that duty or at least penalty is liable to be charged in case excess wastage comes into play. However, it is found that Hon'ble Gujarat High Court in the matter of Commissioner of Customs (Preventive) Vs. Monarch Overseas as reported in 2019 (1) TMI 1513 (Gujarat High Court), while dealing with scope of Notification No. 52/2003-Cus. Dated 03.01.2003, 31.03.2003 particularly clause (3) construed the non-obstante clause by interpreting that once the material procured are used for the purpose of manufacture of finished goods or services then even i....

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....#39;ble Gujarat High Court is applicable and the case law quoted by the revenue are distinguishable or per incuriam. In our view, clause (3) of the Notification 52/2003-Cus takes invisible losses that arise in various industries in its ambit and wastage thus can be at variance from industry to industry." 7. The Tribunal also referred to and relied upon the decision of the CESTAT in case of Meridian Impex v. CCE & ST, reported in 2018 (7) TMI 865-CESTAT, in addition to the decision of this Court. 8. This Court in case of Monarch Overseas (supra), in similar facts, held as under:- "11. That brings us to the second question, as to whether clearance of such scrap upon payment of excise duty would fall within the ambit of paragrap....