2005 (8) TMI 538 - AT - Central Excise

Summary

Issues: Challenge to confirmation of additional excise duty; Interpretation of Notifications No. 8/97-C.E. and No. 55/91-C.E.; Applicability of apex Court judgment.

In this case, the appellant, a 100% EOU manufacturing cotton yarn, contested the confirmation of additional excise duty as per the Commissioner (Appeals)'s order. The appellant cleared goods in the DTA with necessary permission and availed Notifications No. 8/97-C.E. and No. 55/91-C.E., paying duty equal to excise duty on DTA clearances and exempting additional excise duty. Citing Nahar Industrial Enterprises Ltd. v. UOI, the appellant argued no additional excise duty was payable due to the amending Notification No. 11/2000-C.E. The Tribunal noted the Commissioner (Appeals) overlooked the apex Court judgment, which held additional excise duty was not leviable post-amendment and was also exempted by Notification No. 55/91-C.E. Consequently, the Tribunal set aside the Commissioner (Appeals)'s order, allowing the appeal based on the apex Court's ruling. The judgment emphasizes the importance of adhering to legal precedents and statutory exemptions in excise duty matters.