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TMI Blog2004 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 8/97-C.E., dated 1-3-97 the 100% EOUs were exempt from paying duty in excess of amount of BED paid by the producer or manufacturer who is not 100% EOU, whilst after amendment by Notification 11/2000-C.E., dated 1-3-2000 the 100% EOU is exempt from paying duty in excess of amount of BED plus the amount of AED plus any other duties of excise under any other law for the time being in force, paid by the producer or manufacturer who is not 100% EOU. Thus, the view expressed in the Circular dated 19-12-2000 and view of the High Court are indefensible. The Circular afore-noted is, therefore, quashed. The High Court's judgment impugned in these appeals is set aside. Appeal allowed. - 6324-6328 of 2002 - - - Dated:- 10-8-2004 - S.N. Variava and Arijit Pasayat, JJ. [Judgment per : Arijit Pasayat, J.]. - Leave granted in SLP(C) Nos. 24882-24883/2002, 24884-24885/2002 and 1223-1224/2003. 2.All these appeals involve identical issues and are, therefore, disposed of by this judgment which will cover each of the appeals. 3.Appellant in each case questions correctness of the view expressed by Central Board of Excise and Customs, New Delhi (hereinafter referred to as the 'Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that introduction of the words "or any other law for the time being in force" took away exemptions granted to the manufacturers like the appellants under Notification No. 55/91-C.E. All the writ petitions were disposed of by a common judgment which forms the subject matter of challenge in these appeals. 6.Learned Counsel for the appellants submitted that both the Board and the High Court failed to notice that the introduction of the words "or any other law for the time being in force" did not in any way affect the exemption flowing from Notification No. 55/91-C.E. What the appellants were required to pay was the basic excise duty and AED as their counter parts who were not 100% EOUs were required to pay. That had nothing to do for creating a liability of AED so far as the appellants are concerned. 7.In response, learned Counsel for the Union of India submitted that the view expressed in the Circular and endorsed by the High Court does not suffer from any infirmity. The basic intention which is clear from a bare reading of a Notification No. 8/97-C.E. as amended by Notification No. 11/2000-C.E., dated 1-3-2000 is that a manufacturer who is 100% EOU is not in more advant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment vide Notification No. 11/2000 dated 1-3-2000 : Effective rate of duty on certain goods produced in FTZ or EOU. — In exercise of the 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 finished products, rejects and waste or scrap specified in the Schedule of the Central Excise Tariff Act, 1985 (5 of 1986) and 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-paragraphs (a), (b), (c), (d) and (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1st April, 1997 - 31st March, 2002, from so much of the duty of excise leviable thereon under Section 3 of the Central Excise Act, 1944 (1 of 1944) as is in excess of an amount equal to the aggregate of the duties of excise leviable under the said Section 3 of the Central Excise Act or under any other law for the time being in force on like goods, produced or manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the finished goods manufactured exclusively from indigenous raw material and cleared into DTA would be restricted to the "aggregate of the duties of excise leviable under the said Section 3 of the Central Excise Act or under any other law for the time being in force, on like goods produced or manufactured in India other than in a hundred per cent export oriented undertaking or a free trade zone". In other words, such yarns produced and cleared from 100% EOUs to DTA are required to suffer under Central Excise Act itself, by virtue of this exemption, duty which is equal to Basic Excise Duty on yarn plus AED (T TA) leviable on yarn produced. 4. Since over and above the duty leviable under Central Excise Act, goods produced in a 100% EOU and cleared into DTA, would also be leviable to Additional Excise Duty under Textile Textile Articles Act, Notification No. 55/91-C.E. dated 25-7-1991 was issued which exempted all excisable goods produced or manufactured in a 100% EOU from the whole of duty of excise leviable thereon under AED (T TA). Thus, effect of Notification No. 8/97-C.E. as amended and 55/91-C.E. is to restrict the yarn stage duty to Basic Duty under Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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