2010 (2) TMI 1226 - AT - Central Excise

Summary

Issues involved: Appeal filed by Revenue against dropping of proceedings initiated by show cause notice u/s 3(1) of Central Excise Act, 1944 for non-payment of Additional Duties of Excise by E.O.U.

Facts of the case:
- Respondent, a 100% E.O.U., manufactures various types of yarn and clears goods for export and DTA.
- Duty liability on goods produced in E.O.U. includes Excise Duty and Addl. Duty of Customs.
- Addl. Duties of Excise levied on certain textiles under relevant Acts.
- Assessees availing benefits of Notification No. 8/97-C.E. for clearances up to 29-2-2000.

Contestation and adjudication:
- Respondent contested show cause notice, arguing against liability to pay Cess.
- Adjudicating authority dropped proceedings citing earlier orders set aside by CESTAT.
- Revenue appealed against dropping of proceedings.

Revenue's contentions:
- Impugned order incorrect due to rescission of Notification No. 55/91 and issuance of Notification No. 24/2003 exempting duty for E.O.U. goods.
- Board's Circular clarified duty liability for E.O.U. goods cleared into DTA.
- Notification No. 8/97 exempts finished products from excess Excise Duty if sold in India.
- Commissioner failed to consider Board's clarification and relevant notifications.

Respondent's submissions:
- Successfully challenged earlier orders before Tribunal.
- Issue of Additional Duties of Excise already decided in favor of assessee by Tribunal.

Judgment:
- Bench found issue already decided in favor of assessee in previous orders.
- Upheld impugned order based on previous decisions and Apex Court judgment.
- Revenue's appeal rejected.

Conclusion: The appeal filed by Revenue against dropping of proceedings for non-payment of Additional Duties of Excise by E.O.U. was rejected based on previous decisions and legal interpretations.