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TMI Blog2017 (1) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... e observe that there is no exemption granted in so far as this element of tax is concerned. Undoubtedly, this is a countervailing measure and is refunded to traders who are subject to sales tax upon sale of imported goods. The intent of the notification is to place the domestic procuring entity at par with supplier of imported goods. The levy of duty under section 3 of Central Excise Act, 1944 on clearances effected domestically includes all duties leviable under all the statutes relevant to imported goods and, hence, domestic area clearance cannot be excused from leviability. It may also be noted that the exemption to imported goods is administered though a refund mechanism with sanction accorded by customs authorities of place of import. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to clearance at the rates of central excise duty only upon such clearances as were manufactured from domestically procured raw materials and held the appellant to be ineligible owing to absence of any evidence to that effect. 3. It was held that an export oriented unit was required, under section 3 of Central Excise Act, 1994, to discharge duty on domestic clearances by payment of duty at a rate equivalent to that charged on like goods when imported into India. The adjudicating authority, however, took note of the exemption (in serial no 2) in notification no. 23/2003-CE dated 31st March 2003, which replaced notification no. 2/95-CE dated 4th January 1995, permitting clearance at half the duty to be so levied and, as the conditions s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rials in the manufacture of goods that were cleared domestically. This submission is not backed by any proof of procurement of all raw materials from domestic sources and, in the absence of such evidence, we cannot but concur with the original authority that the duties are liable as applicable to goods imported into India. We also concur with the original authority that the benefit of exemption to the extent of 50% of the aggregate duties must be extended as the condition in serial no. 2 of notification no. 23/2003-CE has been complied with. 7. On the issue of levy of special excise duty, we observe that there is no exemption granted in so far as this element of tax is concerned. Undoubtedly, this is a countervailing measure and is refun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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