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Issues:
- Dispute over refund claim of additional duty of customs paid on ex-bonded quantity of Binder Pitch. - Interpretation of Notification No. 121/62-C.E. and its applicability to exemption from levy of additional duty of customs. - Conflict between Central Excise Rules and Customs Act regarding exemptions. - Argument on whether exemption under Central Excise Rules applies to liability for payment of additional duty of customs. - Reference to relevant case laws for clarification on the issue. Analysis: 1. The case involved a dispute regarding the refund claim of additional duty of customs paid on ex-bonded quantity of Binder Pitch by M/s. Hindustan Electro-graphite Ltd., Mandideep. The Assistant Collector initially sanctioned part of the claim but disallowed a portion related to C.V. duty, leading to an appeal by the Respondents. 2. The Assistant Collector rejected the claim for refund, stating that the exemption under Notification No. 121/62 dated 13-6-1962, issued under Central Excise Rules, did not apply to C.V. duty as it falls under the Customs Act, which led to the appeal before the Collector (Appeals). 3. The Collector (Appeals) allowed the appeal of the Respondents, emphasizing that unconditional exemption from excise duty under Notifications issued under Central Excise Rules cannot be ignored concerning the levy of additional duty of Customs under the Customs Tariff Act. This decision prompted the present appeal by the Revenue. 4. The Revenue argued that the Collector (Appeals) incorrectly applied Notification No. 121/62-C.E. for granting exemption from the levy of additional duty of customs, contending that a separate section in the Customs Act governs exemptions related to customs duties. 5. In response, the Respondents cited relevant case laws, including the decision in Collector of Customs, Madras v. Carborandum Universal and Thermax Private Ltd. v. Collector of Customs, to support their position that the benefit of Central Excise exemption Notification can extend to liability for payment of additional duty of customs under the Customs Tariff Act. 6. The Tribunal considered the submissions and upheld the impugned order-in-appeal, rejecting the Revenue's appeal. The Tribunal relied on the interpretation provided in the aforementioned case laws to conclude that the benefit of exemption under Central Excise Rules can apply to liability for payment of additional duty of customs under the Customs Tariff Act. 7. Consequently, the Tribunal dismissed the Revenue's appeal and provided consequential relief to the Respondents in accordance with the law. The decision clarified the applicability of exemptions under Central Excise Rules to customs duties, resolving the dispute over the refund claim of additional duty of customs paid on Binder Pitch.
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