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TMI Blog2014 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 52.02 of the Central Excise Tariff Act, unconditionally, produced or manufactured by a 100% EOU and allowed to be sold in India. Similarly, Notification No. 23/2003-C.E., dated 31-3-2003 also exempts cotton waste falling under Heading 52.02 when manufactured by a 100% EOU and allowed to be sold in India. These two Notifications specifically deals with the exemption on cotton waste manufactured in a 100% EOU and allowed to be sold in India and provides excise duty exemption on such cotton waste. Therefore, the applicable rate of duty of excise on cotton waste manufactured in a 100% EOU and allowed to be sold in India is ‘nil’ and the applicant has discharged the duty liability in accordance with the aforesaid notifications. Therefore, pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sly procured raw cotton and fuel oil contained/used in the manufacture of cotton waste which has been cleared without payment of duty in the Domestic Tariff Area. Accordingly, six show cause notices were issued to the appellants for the period from 1999-2002 to September, 2008 demanding customs duty of Rs. 5,57,83,653/-. The said demands were confirmed vide six orders-in-original and equivalent amount of penalty was also imposed on the appellants. The appellants preferred appeals before the lower appellate authority who vide impugned order rejected their appeals and hence the appellants are before us. 3. The learned Counsel for the appellants submits that the demands have been confirmed in terms of para 3 of Notification No. 52/2003, date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.). 4. The learned A.R. appearing for the Revenue on the other hand contends that in order to avail the benefit under Notification Nos. 52/2003-Cus. and 22/2003-C.E., the appellants should have discharged the excise duty liability on the cotton waste which has been cleared in Domestic Tariff Area. The very fact that the condition that the applicable duty of excise should be paid envisages the payment of duty. In view of the above, he prays to uphold the impugned order and putting the appellants to terms. 5. We have carefully considered the rival submissions. 6. Para 3 of the Notification No. 52/2003-Cus. reads as follows :- Notwithstanding anything contained in this notification, the exemption herewith shall also apply to good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 1958 2. No. 152/94-Customs dated the 13th July, 1994 3. No. 39/96-Customs dated the 23rd July, 1996 4. No. 50/96-Customs dated the 23rd July, 1996 5. No. 84/97-Customs dated the 11th November, 1997 Issued by the Ministry of Finance in pursuance of clause (e) of paragraph 6.9 of the Foreign Trade Policy, without payment of duty. 6.1 Para 6 of the Notification No. 23/2003-C.E. reads as follows :- Notwithstanding anything contained in this notification, the exemption contained herein shall also apply to the goods used for the purpose of processing, manufacture, production or packaging of article or services in an user industry and such articles or services (including rejects, wastes, scrap and remnan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of applicable duty of excise. The question is, what is the applicable duty of excise in respect of cotton waste. Notification No. 6/97 exempts cotton waste falling under Heading No. 52.02 of the Central Excise Tariff Act, unconditionally, produced or manufactured by a 100% EOU and allowed to be sold in India. Similarly, Notification No. 23/2003-C.E., dated 31-3-2003 also exempts cotton waste falling under Heading 52.02 when manufactured by a 100% EOU and allowed to be sold in India. These two Notifications specifically deals with the exemption on cotton waste manufactured in a 100% EOU and allowed to be sold in India and provides excise duty exemption on such cotton waste. Therefore, the applicable rate of duty of excise on cotton waste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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