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TMI Blog2022 (10) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff Area Unit, does the Central Excise Duty have to paid including Special Additional Duty (SAD) of Customs or otherwise. 2. During the period 2007-2008 to 2011-2012 the appellant cleared its final products to its own unit located in Domestic Tariff Area [DTA ] on stock transfer basis. As per the proviso to sub-section (1) of section 3 of the Central Excise Act, 1944 if goods manufactured by a 100% EOU are cleared into DTA, excise duty is leviable of an amount equivalent to Customs duty if such goods are imported into India. 4. Goods which are imported into India are chargeable to Basic Customs Duty, Additional Duty of Customs and Special Additional Duty [SAD] and other forms of duties as applicable. SAD is levied under Section 3(5) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EHTP/STP - "In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) ( hereinafter referred to as the Central Excise Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts excisable goods of the description specified in column (3) of the Table below, and falling within the Chapter, heading No. or sub-heading No. of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise Tariff Act), specified in the corresponding entry in column (2) of the said Table, produced or manufactured in an export oriented undertaking or an Electronic Hardware Technology Park (EHTP) Unit or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Domestic Tariff Area are exempt from payment of sales tax or value added tax. Illustration.- Assuming product X has the value Rs. 100 under section 14 of the Customs Act,1962 and is chargeable to basic custom duty of 25% ad valorem, additional duty of 16% ad valorem and special additional duty of 4% ad valorem. The computation of duty required to be paid would be as follows: Basic Customs duty but for this exemption = Rs. 10/- Basic Customs duty because of this exemption = Rs. 5/- Value for the purpose of special additional duty = Rs. 100/- + Rs. 5/- + Rs. 105/- Additional duty = 20% of Rs. 105/-= Rs. 21/- Total duty payable after this exemption = Rs. 5/- + Rs. 21/- = Rs. 26/- 6. It is undisputed that in this case the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) ELT 303 (Tri.-Mumbai)]; (iv) Behr India Ltd. Vs. Commissioner of Central Excise, Pune [2016 (6) TMI 315-CESTAT Mumbai] (v) TFL Quinn India Pvt. Ltd. Vs. CCE & ST, Hyderabad-IV [2018 (9) TMI 732-CESTAT-Hyderabad] 9. He submits that in all the above cases it has been decided by the Tribunal that not paying VAT while transferring the goods does not mean that the goods are exempt from VAT. Even in the present case, there is no exemption notification by the State Government from VAT with respect to the goods which have been transferred to the DTA unit. He further submits that once the DTA unit further sells the product appropriate VAT will be paid. Since there is no sale during stock transfer no VAT was paid but it does not mean there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and paragraph 10 is reproduced below: "10. We are unable to accept the contentions raised by the ld. Departmental Representative and the findings recorded by the adjudicating authority for more than one reason. Firstly, it is the fact that the inter unit clearance from EOU to DTA are not exempted from payment of sales tax by the State Government by any notification and revenue unable to bring on record any notifications issued by the State Government or otherwise to indicate that inter unit transfers from EOU to DTA are exempted. It is an admitted fact that whenever there is an inter unit transfer, it is not sales transactions and hence the sales tax/CST/VAT may not get attracted does not mean ipso facto, it is an exemption granted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as an exemption granted by the State Government. We find that for the purpose of taking benefit of Notification 23/2003-C.E., as amended, the one and only condition specified in respect of the goods being cleared into DTA, is if the said goods are exempted by the State Government from payment of sales tax/VAT, in the present case there is no such notification or order issued by the State Government exempting impugned goods from the payment of sales tax/VAT. It is to be held that plain reading of Notification No. 23/2003-C.E. as amended is applicable 'Qua Goods" and exemption is across the Board and is applicable to all such goods which are not exempted by the State Government by issue of notification or an order from payment of sales tax/C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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