2017 (3) TMI 721 - AT - Central Excise

100% EOU - benefit of N/N. 30/2004-CE dated 09.07.2004 for duty chargeable Sub-Section (1) of Section 3 of CA, 1975, which in common parlance is also called CVD - whether exemption under N/N. 30/2004 CE dated 09.07.2004 for the goods manufactured by 100% EOU for payment of duty on it clearances in DTA is admissible or not? - Held that - benefit of N/N. 30/2004 was available to the appellants for determination of extent of CVD for determination of Central Excise duty payable under proviso to Section 3 of CEA, 1944 by availing benefit of N/N. 23/2003-CE - benefit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Admissibility of exemption under Notification No. 30/2004 CE for goods manufactured by 100% EOU for payment of duty on clearances in DTA.

Detailed Analysis:
The case involved two appeals against a common impugned Order-in-Appeal. The appellants, a 100% export-oriented unit manufacturing Synthetic Braided Cord and Synthetic Narrow Woven Fabrics, cleared goods into the Domestic Tariff Area under certain notifications. The Revenue contended that the appellants did not pay CVD for a specific period and issued show-cause notices demanding Central Excise duty. The demands were based on the denial of the benefit of Notification No. 30/2004 to the appellants. The Orders-in-Original confirmed the demands and imposed penalties, which were challenged by the appellants before the Commissioner (Appeals). The Commissioner upheld the Orders-in-Original, stating that the exemption provided in the notifications was not applicable to goods manufactured by a 100% EOU unless specifically mentioned. Aggrieved by this decision, the appellants approached the Tribunal.

The learned counsel for the appellant argued that a similar issue had been decided in favor of the appellants by a Circuit Bench at Allahabad in a previous case. He also referenced a ruling by the Hon'ble Supreme Court in another case to support the appellant's position. After hearing both sides, the Tribunal considered whether the exemption under Notification No. 30/2004 CE for goods manufactured by a 100% EOU for payment of duty on clearances in DTA was admissible. The Tribunal noted a precedent decision by a Circuit Bench, where it was held that the benefit of Notification No. 30/2004 was available to appellants for determining the extent of CVD and Central Excise duty payable under relevant provisions. Relying on this precedent and the Supreme Court ruling, the Tribunal allowed both appeals, granting the appellants consequential relief.