2001 (2) TMI 162 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification 214/86-C.E. dated 25-3-1986 regarding exemption of Additional Duty of Excise for goods manufactured as job work.

Summary:
The appeal challenged the order by the Commissioner of Customs and Central Excise (Appeals), Bangalore, regarding the liability to pay Additional Duty of Excise on Nylon Tyre Cord Fabrics manufactured as job work. The appellant contended that as per Notification 214/86-C.E., the duty of Excise is exempted for goods manufactured as job work, including Additional Duty of Excise. The appellant relied on legal precedents and CBEC Circular to support their argument.

On the other hand, the Revenue argued that the exemption under the Notification only applies to basic duty of Excise, not Additional Duty of Excise. They referenced a Supreme Court decision related to the interpretation of similar notifications and clauses.

The appellant further argued that the issue of Additional Duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 was not addressed in the Supreme Court decision cited by the Revenue. They referred to a High Court decision analyzing the scope of duty of Excise under different notifications.

After careful consideration, the Tribunal found merit in the Revenue's argument. The Notification 214/86-C.E. specifically exempts only the basic duty of Excise, in line with the interpretation provided by the Supreme Court in a previous case. Therefore, the appeal was dismissed based on the limited scope of the exemption mentioned in the Notification.