2005 (1) TMI 502 - AT - Central Excise

Summary

Issues:
Claim for refund of duties under Notification No. 33/99-C.E. rejected due to levy of additional duty of excise on Tea under a different Act.

Analysis:
The appellants filed a claim for refund of duties amounting to Rs. 1,79,692.00 paid in March and April 2003 under Notification No. 33/99-C.E. However, their claim was rejected because the duty paid was on Tea, which was exempted from excise duty by Notification No. 6/2003-C.E. Instead, an additional duty of excise of Re. 1/- per Kg. was levied on Tea through the Fourth Schedule by the Finance Bill, 2003. This surcharge was enacted under Section 157 of the Finance Act, 2003, and not under the Acts specified in the original Notification (Additional Duties of Excise (Goods of Special Importance) Act, 1957, and Additional Duties of Excise (Textiles and Textile Articles) Act, 1978).

Upon hearing both parties, it was noted that the Notification exempted goods specified in the Schedule from excise duty, except for certain goods, when cleared from specific locations. The duty exemption applied under the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978. Since the additional duty of excise on Tea was not levied under these specified Acts as per the Notification, the claim for refund was deemed to lack merit.

In light of the clear language of the Notification and the absence of the additional duty of excise on Tea being levied under the relevant Acts, the appeal for refund was found to be without merit. Consequently, the appeal was dismissed by the Appellate Tribunal CESTAT, KOLKATA, upholding the rejection of the refund claim for duties paid on Tea in March and April 2003.