2006 (2) TMI 311 - AT - Central Excise

Summary

Issues:
1. Whether National Calamity Contingent Duty (NCCD) is leviable on goods cleared for a United Nations Funded Project?
2. Whether exemption from NCCD levy requires a separate notification in the present case?

Analysis:
1. The appellant argued that they were exempted from NCCD levy under a relevant Notification as they were clearing goods for a United Nations Funded Project. The counsel referred to the provisions of the Finance Bill, 2001-2002, specifically sub-clause (3) of Clause 129, which laid down provisions related to refunds, exemptions, and penalties under the Central Excise Act, 1944. The counsel contended that since Excise duty was exempted under the relevant Notification, NCCD should not be levied. The Tribunal noted judgments such as Gokak Mills v. CCE and Orient Weaving Mills (P) Ltd. v. UOI to support the appellant's argument. The Tribunal found that the specific proviso to sub-clause (3) of Clause 129 of the Finance Bill 2001-2002 exempts the items in question from NCCD levy. Citing the Apex Court's clarification in Gokak Mills's case, the Tribunal granted a waiver of pre-deposit of duty and penalty, staying their recovery until the appeal's disposal.

2. The Revenue contended that a separate Notification of exemption of NCCD levy was required for granting exemption in the present case. However, after considering the submissions and provisions of the law, the Tribunal found that the specific proviso in the Finance Bill 2001-2002 exempted the items from NCCD levy. The Tribunal referred to the Apex Court's decision in Gokak Mills's case to support this finding. As a result, the Tribunal allowed the stay application, waiving the pre-deposit of duty and penalty, and stayed the recovery until the appeal's final disposal. The matter was scheduled for final hearing in due course.