2009 (1) TMI 850 - AT - Central Excise

Summary

Issues involved: Interpretation of duty payment on raw materials used in finished products manufactured by 100% EOU and cleared in domestic tariff area.

Summary:
The appeal was filed by the Revenue against the Commissioner (Appeals) order regarding duty payment on finished products by 100% EOU. The Revenue argued duty is payable on raw materials, citing a Tribunal decision. However, the respondents cited various decisions supporting no separate duty on raw materials once duty is paid on finished products.

The issue of duty payment on raw materials used in finished products by 100% EOUs in domestic tariff area was considered. The Tribunal found the issue settled by relevant decisions cited by the respondents, concluding that no duty is required on raw materials in such cases. The appeal by the Revenue was deemed meritless and rejected.