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1996 (11) TMI 190 - AT - Central Excise
Issues:
1. Interpretation of Section 3 of the Additional Duties of Excise Act, 1978. 2. Applicability of Rule 13 of the Central Excise Rules, 1944 to additional duties of excise on exported goods. 3. Whether exemption from duty under Rule 13 extends to additional duties of excise under the 1978 Act. Analysis: Issue 1: Interpretation of Section 3 of the Additional Duties of Excise Act, 1978 The controversy in this case revolves around the interpretation of Section 3 of the Additional Duties of Excise Act, 1978. The section specifies the levy and collection of additional duties of excise on certain textiles and textile articles. The provision mandates that when goods chargeable with excise duty under the Central Excises and Salt Act, 1944 are assessed to duty, an additional duty of excise is levied. It further states that the provisions of the Central Excises and Salt Act and its rules, including those relating to refunds and exemptions, apply to the levy and collection of additional excise duty under the 1978 Act. Issue 2: Applicability of Rule 13 of the Central Excise Rules, 1944 to additional duties of excise on exported goods The appellant argued that Rule 13 of the Central Excise Rules, 1944, which allows for the export of goods under bond without payment of duty, should also apply to the additional duties of excise under the 1978 Act. The appellant contended that since the goods were exported under Rule 13 without payment of duty, no additional duty of excise should be chargeable. The appellant relied on various judgments to support their argument, emphasizing that the provisions of Rule 13 should extend to additional duties of excise as well. Issue 3: Whether exemption from duty under Rule 13 extends to additional duties of excise under the 1978 Act The Tribunal analyzed the provisions of Rule 13 and Rule 14 of the Central Excise Rules, noting that Rule 13 provides for exemption from duty in the case of goods actually exported. The Tribunal also highlighted that Rule 14, which deals with the execution of a general bond, supports the application of Rule 13 to additional duties of excise. The Tribunal further referenced the judgment of the Hon'ble Calcutta High Court in a similar case, where it was held that if there is a rule exempting the imposition of Central Excise duty, the exemption should also apply to the levy of additional excise duty. Based on this analysis, the Tribunal concluded that there was a strong case in favor of the appellant and waived the pre-deposit of duty and penalty. In conclusion, the Tribunal allowed the stay petition, emphasizing that the provisions of Rule 13 of the Central Excise Rules, 1944 should extend to the levy of additional duties of excise under the 1978 Act. The judgment provides a detailed interpretation of the relevant legal provisions and case law to support the decision in favor of the appellant.
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