KINGSLEY INDUSTRIES LTD Vs. SUPERINTENDENT OF CENTRAL EXCISE

JUDGEMENT

(1.) The petitioner is an exporter. It exports parts of the machine to jute mills in Nepal. He says that he is entitled to central excise duty exemption. He had been granted such exemption during similar exports from April, 2003 to August, 2007. All of a sudden, by a letter dated 7th September, 2007, the Central Excise Department declared that it was not entitled to such exemption. The material part of the letter is as follows :

(2.) Before I come to the question of exemption, it has to be determined whether export to Nepal is to be treated as clearance under the Central Excise Act. Further, whether the exemption announced under that Act is applicable to such clearance.

(3.) According to the circular issued by the Central Board of Excise and Customs, at Annexure P/10', Page-59 of the writ petition, these exports are to be so treated. Under paragraph-4 of the circular, it is provided as follows :