2017 (4) TMI 488 - AT - Central Excise

Benefit of exemption from AED(TTA) and AED(GSI) - N/N. 55/91-CE and N/N. 127/84-CE - Held that - during the currency of these notifications assessee are entitle to exemption from AED(GSI) and AED(TTA). We find that the said notifications have been rescinded by the N/N. 24/03-CE dated 31-3-2003 - In so far as manner of calculation of duty is concerned the Commissioner(Appeals) remanded the matter to the original adjudicating authority to re-determined duty in terms of decision of this Tribunal in case of Indoworth India Ltd 2004 (6) TMI 57 - CESTAT, NEW DELHI - appeal allowed - decided partly in favor of appellant and part matter on remand.

Issues involved:
1. Appeal against remand order by Commissioner(Appeals)
2. Denial of benefit of exemption from AED(DOSI)
3. Appeal by Revenue against exemption from AED(TTA)
4. Challenge to Tribunal's decision in the case of Indoworth India Ltd
5. Benefit of Notification No.18/96
6. Interpretation of Notification No.55/91-C.B. and Notification No.127/84-CE
7. Calculation of duty based on Tribunal's decision in the case of Indoworth India Ltd

Issue 1: Appeal against remand order by Commissioner(Appeals)
The appeals were filed by M/s. Uniworth Textiles Ltd against the remand order passed by the Commissioner(Appeals), with the Revenue also appealing against the same order. The Commissioner(Appeals) concluded that 50% of aggregate customs duties were leviable for a specific period, and 50% of each customs duty for the rest of the period under question. The matter was remanded to the Adjudicating authority regarding the denial of the benefit of exemption from AED(DOSI) on goods. The Commissioner(Appeals) allowed the benefit of AED(TTA) under Notification No.18/96, which was challenged by the Revenue. The Commissioner relied on a Tribunal decision in the case of Indoworth India Ltd, which was challenged by the Revenue, but the challenge was rejected in another case.

Issue 2: Denial of benefit of exemption from AED(DOSI)
The Counsel for M/s. Uniworth Textiles Ltd argued that the benefit of exemption from AED(DOSI) was available under Notification No.127/84-CE and Notification No.55/91. The Commissioner(Appeals) failed to recognize this benefit and remanded the matter. The Revenue contended that the benefit of Notification No.18/96 was not available to the assessee. The Tribunal found that during the currency of the relevant notifications, the assessee was entitled to exemption from AED(GSI) and AED(TTA). The order of the Commissioner(Appeals) was modified to allow the benefit of exemption from AED(TTA) and AED(GSI) in line with the mentioned notifications.

Issue 3: Appeal by Revenue against exemption from AED(TTA)
The Revenue appealed against the exemption from AED(TTA) allowed by the Commissioner(Appeals) under Notification No.18/96. The Tribunal examined Notification No.55/91-C.B. and Notification No.127/84-CE, which granted exemptions to goods produced under 100% Export Oriented Undertakings. The Tribunal upheld the Commissioner(Appeals)'s decision to allow the exemption from AED(TTA) and AED(GSI) during the currency of these notifications. The Revenue's appeal was rejected.

Issue 4: Challenge to Tribunal's decision in the case of Indoworth India Ltd
The Commissioner(Appeals) relied on a Tribunal decision in the case of Indoworth India Ltd for allowing the benefit of AED(TTA). The Revenue challenged this decision, but the challenge was rejected in another case. The Tribunal modified the order to allow the benefit of exemption from AED(TTA) and AED(GSI) in line with specific notifications.

Issue 5: Benefit of Notification No.18/96
The Counsel for M/s. Uniworth Textiles Ltd argued that full exemption was available on certain goods under Notification No.27/84, while the Commissioner(Appeals) allowed the benefit of AED(TTA) based on Notification No.18/96. The Tribunal found that the benefit of exemption from AED(TTA) and AED(GSI) was available during the currency of specific notifications, which were rescinded later. The Tribunal upheld the re-computation of duty based on the Tribunal's decision in the case of Indoworth India Ltd.

Issue 6: Interpretation of Notification No.55/91-C.B. and Notification No.127/84-CE
The Tribunal examined Notification No.55/91-C.B. and Notification No.127/84-CE, which provided exemptions to goods produced in 100% Export Oriented Undertakings from additional duties of excise. The Tribunal found that the assessee was entitled to exemption from AED(GSI) and AED(TTA) during the currency of these notifications. The Tribunal modified the Commissioner(Appeals)'s order to allow the benefit of exemption in accordance with the mentioned notifications.

Issue 7: Calculation of duty based on Tribunal's decision in the case of Indoworth India Ltd
The Commissioner(Appeals) remanded the matter to the original adjudicating authority to re-determine duty based on the Tribunal's decision in the case of Indoworth India Ltd. However, this Tribunal decision was overruled by the Apex Court in another case. The Tribunal modified the order to allow the benefit of exemption from AED(TTA) and AED(GSI) as per specific notifications during their currency. The appeal of M/s. Uniworth Textile Ltd was partly allowed, while the Revenue's appeal was rejected.

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