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TMI Blog2024 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... in the first schedule to the Central Excise Tariff Act, there is no dispute about the facts that the finished goods are manufactured wholly out of the indigenous raw materials and that the finished goods fall under chapter 52 and 54 as specified in the above Notification. Therefore, there are no irregularity in Appellant s claim related to exemption notification. The Department, however, took the view that Notification No. 13/98, dated 2-6-1998 is applicable, as per which, the Appellant was liable to pay duty at the rate of 30 per cent as this product was manufactured by 100% EOU and cleared in DTA and demanded differential duty - it is found that where there are multiple Notifications operating simultaneously in respect of the same commodity and extending different benefits, an option must be given to the assessee to choose the Notification that would be most beneficial to it. The assessee has to be permitted to elect and choose the Notification of its choice and the Department cannot thrust a Notification of its choice upon the assessee - the view is supported by two judgments of the Supreme Court in the case of H.C.L. Limited v. Collector of Customs, New Delhi, [ 2001 (3) TMI 97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.06.2003 and dated 09.07.2003 thereby passing order. Against this order, the department and appellant filed an appeal before the Tribunal. Tribunal vide its Order No. A/927-928/WZB/2005-C-III dated 15.06.2005 and Order No. A/518-519/WZB/AHD/2008 dated 24.03.2008 set aside the OIOs and remanded the matter to Learned Commissioner for fresh decisions . 2. In the denovo adjudication, vide impugned OIO No. SUR-EXCUS-002-COM-094-16-17 dated29.03.2017 and SUR-EXCUS-002-COM-095-16-17 dated 29.03.2017 the adjudicating authority held that deemed export is par with the physical export for computation of the value upto which the appellant was entitled for DTA sales. Also deemed export shall be counted towards fulfillment of export performance and Net Foreign Exchange earnings as a Percentage of Export. He allowed the benefit of Notification No. 2/95-CE and 13/98-CE by considering deemed exports as DTA sales. However he found that the Appellant has not paid the applicable duty in accordance with the Notification No. 13/98-CE. Therefore confirmed the differential duty amounting to Rs. 6,52,469/- and 10,11,593/- along with interest and penalty. He dropped the demand of customs duty demanded on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Notification No. 13/98-CE as held by Ld. Commissioner. For appreciating the respective contentions of both the sides, it would be beneficial to refer firstly to the relevant Notifications relied upon by both the sides Notification No. 20/98-C.E., dated 18-7-1998: - Concessional Rate of duty for Fabrics of cotton and man-made fibres not subjected to any process etc Exemption In the exercise of powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (2) of the Table below and falling under the Chapter No. of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) specified in the corresponding entry in column (3) of the said Table, produced or manufactured, in a hundred per cent export-oriented undertaking or a free trade zone wholly from the raw materials produced or manufactured in India, and allowed to be sold in India, under and in accordance with, the provisions of sub-paragraph (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade zone, are wholly exempt from the duties of excise or are chargeable to Nil rate of duty; and (b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997 - 31 March, 2002. [Notification No. 13/98-C.E., dated 2-6-1998] 7. We find that the Notification No. 20/98-CE covered DTA clearances effected by the EOU in terms of para 9, 9(a), (b), (c), (d) or (f) of para 9.9. or para 9.20 of the Import Export Policy. Further this Notification fixes the effective rate of duty at 50% of Central Excise Tariff Rate, subject to the condition that the finished goods are manufactured by 100% EOU wholly out of indigenous raw materials and the finished goods are chargeable to Nil rate of duty if manufactured and cleared by DTA unit. We find that the Appellant during the period October 2000 to January 2001 had cleared rejects of Polyester Grey Fabrics classifiable under Chapter 52 of the CETA on payment of duty @50% of duty specified in the first schedule to the Central Excise Tariff Act, there is no disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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