9911796707
TMI Blog1991 (7) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... 50% by weight of the product and the balance quantity of Cellulose Acetate Scrap is allowed to be cleared for Home Consumption on payment of duty after allowing 2% manufacturing loss. The respondents were required to pay additional duty of customs (CVD) on the Cellulose Acetate Scrap apart from customs duty by the order of the Assistant Collector of Customs, Kandla Free Trade Zone dated 22-6-1989. This came about because of the following circumstances :- The respondents were importing cellulose acetate scrap sheets claiming exemption under Notification No. 77/80, dated 17-4-1980. In this Notification Para 2(a)(ii) provides for clearance of scrap or waste material arising in the course of production within the Zone to any place outside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harged under Section 3 of the Customs Tariff Act is not leviable in this case as the Central Excise duty is exempted and that since the respondents had paid the duties of customs on the scrap, the benefit of exemption Notification 16/83 has rightly been extended to them. He, therefore, allowed the appeal against which the Collector of Customs, Kandla has preferred the present appeal. 2. The learned Senior Departmental Representative Shri S.K. Roy appearing for the Appellant Collector drew attention to the grounds of appeal and submitted that the exemption Notification 16/83 applies only where the goods discharged their duty liability by paying duties of customs, additional duty of customs equivalent to central excise duty is part and parc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable thereon under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) : Provided that :- (a) such scrap or waste material is out of any goods brought into the said zone from a place outside India; and (b) such scrap or waste material is cleared for home consumption outside the said zone on payment of duties of customs leviable thereon under any law for the time being in force." It is a Notification issued under Rule 8(1) of the Central Excise Rules. The demand for short levy duty in this case is based on the reasoning that this exemption notification is not available for the purposes of levy and collection of additional duty of customs (CVD). However, it is now well settled that a notification issued under Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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