KOTHARI POUCHES LIMITED Vs. C.C.E.

JUDGEMENT

(1.) Heard both sides.

(2.) The appellants filed this appeal against the adjudication order passed by the Commissioner of Central Excise. The learned Commissioner of Central Excise confirmed the demand on the ground that the appellants paid additional duty at the rate of 10% instead of 18% during the period in question.

(3.) The contention of the appellant is that as pre budget for the year 2001 -2002, the rate of duty of Pan Masala containing Tobacco were Basic Excise duty at the rate of 16%, additional Excise duty at the rate of 18%, Special Excise duty at the rate of 16% and National Calamity Contingent Duty (NCCD) at the rate of 10%. The total of these duties comes to 60%. The contention of the appellant is that while clearing the Pan Masala containing Tobacco they by mistake paid additional excise duty at the rate of 10% instead of 18% and on the other hand, paid NCCD at the rate of 18% instead of 10%. The contention of the appellant is that in all they paid 60% duty and if the differential duty in respect of additional excise duty is demanded, in such a case, they are entitled for refund of NCCD which was paid in excess. The appellants relied upon the decision of the Hon'ble Supreme Court in the case of Collector of Central Excise, Hyderabad v. Divya Enterprise Ltd., reported in 2003 (153) E.LT.497(S.C) where Hon'ble Supreme Court allowed such adjustment.