COMMISSIONER OF CENTRAL EXCISE Vs. MODERN DENIM LTD.

JUDGEMENT

(1.) THE issue in dispute in these two appeals filed by the Revenue against the order of the Commissioner of Central Excise (Appeals) is the liability of 100% E.O.U. to levy of additional excise duty under the Additional Duties of Excise (goods of Special Importance) Act, 1957, when the goods are cleared into the domestic tariff area. The respondents were extended the benefit of exemption from payment of Additional Excise Duty (AED) in terms of Notification No. 127/84 by the lower appellate authority.

(2.) WE have heard both sides. The revenue challenges the order of the lower appellate authority on the following grounds:

(3.) WE have heard both sides. We find that it is possible to dispose of these appeals in the light of the Apex Court judgment in Nahar Industrial Enterprises Ltd. v. Union of India and that it is not necessary for us to keep this appeal pending to await decision of the Larger Bench in the case of the same assessee when the issue was referred as for the reason that the reference to the Larger Bench is in the context of Notification No. 2/95 providing exemption from payment of basic excise duty while the issue in these two cases is the eligibility to exemption from payment of additional excise duty which is the subject matter of the Supreme Court decision cited supra in the context of Notification No. 55/91 under the provision of the Additional Duty of Excise (Textiles and Textile Articles) Act, 1978 which is in parimateria with Notification No. 127/84 which is relevant in today's cases.