2008 (12) TMI 722 - AT - Central Excise

Clearance of Partially Oriented Yarn (POY) to 100% EOU - clearance for captive consumption - demand of NCCD - N/N. 108/95-CE dated 28.8.95

Summary

Issues: Challenge to demand for NCCD on clearance of POY to 100% EOUs and for captive consumption with interest and penalties.

The judgment by the Appellate Tribunal CESTAT AHMEDABAD involved a challenge to the demand for NCCD on the clearance of Partially Oriented Yarn (POY) to 100% EOUs and for captive consumption, along with interest and penalties. The appellants contested the impugned order, citing precedents to support their arguments. The appellants' advocate referred to previous Tribunal decisions, including Tatra Trucks India Ltd. vs. CCE, Chennai and CCE, Trichy vs. Kulavi Tobacco Industry, to argue that NCCD is not applicable to clearances for captive consumption. Additionally, in the case of Toyota Krloskar Motor Pvt Ltd. vs. CCE, Bangalore, it was established that NCCD is not leviable for goods cleared under Notification No. 108/95-CE, which the advocate contended should also apply to clearances to 100% EOUs. The Tribunal concurred with the advocate's stance, noting that the issue was settled and the judgment regarding clearances under Notification No. 108/95 could be extended to 100% EOUs. Consequently, the appeal was allowed in favor of the appellants, providing them with consequential relief.