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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 1983 (12) TMI AT This

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1983 (12) TMI 283 - AT - Central Excise

Issues:
1. Exemption from additional excise duty in lieu of sales tax on processed man-made fabrics.
2. Exemption from Handloom Cess on processed man-made fabrics for trade samples.

Analysis:
1. The appellants sought exemption from additional excise duty in lieu of sales tax on processed man-made fabrics for a specific period. They argued that a notification exempting trade samples did not extend to additional excise duty, leading to a promissory estoppel in their favor. They relied on relevant judgments to support their case. However, the Department contended that the exemption notification was effective only prospectively and cited case law to argue against estoppel in taxation matters. The Tribunal observed that no promise was made by the Department to forego collecting the additional duty, and there was no evidence of a general practice of non-collection. Therefore, the appellants' plea based on promissory estoppel was rejected, and it was established that the tax was lawfully payable.

2. Regarding Handloom Cess on trade samples of processed man-made fabrics, the appellants argued that such samples should not be liable for the cess. The Department's representative asserted that trade samples were still considered processed fabrics and thus subject to the cess. The Tribunal analyzed the definition of processed fabrics and concluded that even small fabric pieces like trade samples were subject to the cess. Therefore, the appellants' plea regarding Handloom Cess exemption was also rejected.

3. In the final decision, the Tribunal rejected the appeal, upholding the liability of the appellants to pay both the additional excise duty and Handloom Cess. The order was based on the evidence presented and the legal position, emphasizing that the Department should ensure uniform treatment among similar entities to avoid discriminatory practices. The judgment highlighted the legal principles governing taxation matters and the lack of evidence to support the appellants' claims of exemption based on estoppel or trade sample classification.

This detailed analysis of the judgment from the Appellate Tribunal CEGAT NEW DELHI provides a comprehensive overview of the issues raised, the arguments presented by both parties, and the Tribunal's reasoning leading to the final decision on the matters of exemption from excise duty and Handloom Cess on processed man-made fabrics for trade samples.

 

 

 

 

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