2007 (8) TMI 52 - AT - Central Excise

EOU - Department contended that respondent is not entitle for benefit of Notification No. 43/2001-C.E. (N.T.) on DTA clearance - Held that department contention was not correct and allowed benefit of notification

Summary

Issues:
- Benefit of Notification No. 43/2001-C.E. (N.T.) to EOUs
- Denial of benefit of the notification to EOUs
- Interpretation of rules under Central Excise Rules, 2002

Analysis:
The appeal before the Appellate Tribunal CESTAT, Chennai involved the department challenging an order of the Commissioner (Appeals) that granted the benefit of Notification No. 43/2001-C.E. (N.T.) to the respondents, who were a 100% EOU. The respondents had cleared cotton yarn to the Domestic Tariff Area (DTA) without duty payment under the said notification, with necessary permissions and certificates. The original authority had denied the benefit to the appellants, stating it was not admissible to EOUs. However, the Commissioner (Appeals) allowed the appeal filed by the assessee against this decision, leading to the Revenue's present appeal.

Upon hearing both sides, the Tribunal noted that the issue of denying the benefit of Notification No. 43/2001-C.E. (N.T.) to EOUs had been previously addressed in favor of EOUs by the Tribunal's decisions. The Commissioner (Appeals) had considered past decisions related to EOUs claiming similar benefits under a previous notification, and it was observed that the provisions of the current notification were similar to the previous one. The lower appellate authority ruled in favor of the respondents based on the parity between the rules under which their case fell and the rules applicable in previous cases.

The Tribunal highlighted the absence of any mention of case law relied upon by the Commissioner (Appeals) in the present appeal. Ultimately, the Tribunal upheld the impugned order, dismissing the appeal of the Revenue. The judgment was dictated and pronounced in open court, concluding the legal proceedings in this matter.