EURO COSTPIN LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The issue involved in this Appeal filed by M/s. Euro Costpin Ltd. is whether they are liable to pay the Additional Excise Duty under the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 on the yarn manufactured by them.

(2.) Shri Balbir Singh, learned Advocate, submitted that the Applicants is a 100% Export Oriented Unit, manufactures cotton yarn and blended yarn; that the matter is covered against them by judgment of the Punjab and Haryana High Court in the case of Vardhman Polyex Ltd. v. UOI 2001 (78) ECC 53 (P and H); 2001 (135) ELT 17 (P and H) in which they were also one of the Appellants; that on appeals filed by the Appellants, the Supreme Court has directed vide Order dated 16.9.2002 that "any action taken, pursuant to the impugned circular by the respondents shall be subject to the results of these appeals." He also mentioned that the Appellants have been registered with BIFR as sick industry which is evident from letter dated 27.11.2001 of BIFR. He finally mentioned that as per Board's Circular No. 384/17/98 -CX dated 20.3.98, they were eligible to avail of exemption from the payment of Additional Excise duty under Notification No. 55/91 Central Excise dated 25.7.91.

(3.) Countering the arguments Shri Vikas Khattar, learned SDR, submitted that the Punjab and Haryana High Court, after considering the various notifications and Board's Circular, has held that the Appellants are liable to pay the Additional Excise duty in respect of clearances made in the Domestic Tariff Area; that further, the Appellate Tribunal also have taken the similar views in the following two cases: