2002 (10) TMI 501 - AT - Central Excise

Summary

Issues:
- Whether Additional Duty of Excise is leviable on goods cleared from a 100% Export Oriented Undertaking to the Domestic Tariff Area.
- Whether the Additional Duty of Excise is exempted under Notification No. 55/91-C.E., dated 25-7-91.

Analysis:
1. The issue in these appeals is whether the Additional Duty of Excise under the Additional Duties of Excise (Textiles and Textile Articles) Act is applicable to goods cleared from a 100% Export Oriented Undertaking to the Domestic Tariff Area or if it is exempted under Notification No. 55/91-C.E., dated 25-7-91.

2. The Revenue contended that Notification No. 8/97-C.E., as amended, required payment of additional excise duty along with basic excise duty for goods sold in the Domestic Tariff Area by 100% E.O.U. The Revenue relied on legal precedents and circulars to support their argument, emphasizing the need for parity in duty payment between E.O.Us and other manufacturers.

3. On the other hand, the Respondent argued that Circulars issued by the Ministry of Finance clarified that goods produced by a 100% EOU were exempt from Additional Duty of Excise under Notification No. 55/91. They cited Supreme Court decisions regarding the binding nature of circular interpretations on Revenue.

4. The Respondent further argued that Circulars in effect during the relevant period supported their exemption claim. However, the Revenue pointed out that the Circulars were not specifically related to goods cleared by 100% EOU to the Domestic Tariff Area, as highlighted in a Punjab & Haryana High Court case.

5. The Tribunal analyzed the legal provisions and circulars in detail. They noted the amendment to Notification No. 8/97, which allowed exemption from duties under various laws for goods cleared by 100% EOU to the Domestic Tariff Area. Relying on the judgment of the Punjab & Haryana High Court and the amended notification, the Tribunal ruled in favor of the Revenue, holding that Additional Excise Duty was payable by the Respondents.

In conclusion, the Tribunal allowed all appeals filed by the Revenue, determining that the Additional Duty of Excise was applicable to goods cleared by a 100% EOU to the Domestic Tariff Area, based on the amended notification and legal interpretations provided by the Punjab & Haryana High Court.