2000 (9) TMI 508 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 1/93-C.E. for computation of Central Excise duty regarding goods cleared under Deemed Export Scheme.

Analysis:
The appellants, engaged in manufacturing Alumina Bells, Rings, etc., availed benefits under Notification No. 1/93 as an S.S.I. Unit. A show cause notice was issued, demanding duty for not including the value of goods cleared under Deemed Export Scheme in the total clearance value for duty determination. The Revenue argued that Deemed Exports should be treated as clearances for home consumption, leading to the impugned Orders.

The appellants contended that Deemed Exports cannot be equated with clearances for home consumption as they are considered exports and are not specifically mentioned in Notification 1/93. The Revenue argued that Deemed Exports are not defined in the Central Excise Act, and thus, should not be treated as exports for computation purposes under the Notification.

The Tribunal analyzed the submissions and focused on determining whether the value of Deemed Exports should be considered while calculating the total value of clearances under Notification No. 1/93-C.E. Referring to Chapter X of Deemed Exports, it was noted that Deemed Exports are transactions where goods supplied do not leave the country but are treated as exports for benefit purposes by law. The Tribunal found that Deemed Exports were not specifically mentioned in Notification 1/93, unlike exports to Nepal and Bhutan, indicating that the absence of mention favored the assessee.

Consequently, the Tribunal concluded that the value of Deemed Exports should not be added when computing the clearances' value under the Notification. The impugned Order was set aside, and the appeal was allowed in favor of the appellants, granting consequential reliefs.