PHOENIX LAMPS INDIA LTD. Vs. CCE

JUDGEMENT

(1.) The issue involved in these appeals, filed by M/s. Phoenix Lamps India Ltd., relates to the manner for computing the amount of duty calculated @ 50% of each of the duties of Customs.

(2.) Shri Kamaljeet Singh, learned Advocate, submitted that the appellants have a unit in the Noida Export Processing Zone (NEPZ) for manufacture and export of Halogen and Compact Fluorescent Lamps; that under Notification No. 2/95 -CE dated 27.12.1993, the effective rate of excise duty on the goods cleared to Domestic Tariff Area (DTA) is equal to the amount calculated @ 50% of each of the duties of Customs which would be leviable under Section 12 of the Customs Act; that the Revenue is of the view that the duty is to be calculated @ 50% of the aggregate of the customs duty; that this issue has now been settled by the Larger bench of the Tribunal in the case of Indoworth India Ltd. v. CCE 2004 (63) RLT 473 (CESTAT -LB) : 2004 (115) ECR 376 (T -LB). We also heard Mrs. Charul Barnwal, learned SDR.

(3.) The issue involved in this appeal pertains to the period from 16.9.1999 to 27.3.2000 which is squarely covered by the decision of the Larger Bench of the Tribunal in the case of Indoworth India Ltd. (supra). The Larger Bench has held that Notification No. 2/95 does not provide any exemption from payment of so much of duties of excise as in excess of the amount equal to 50% of the aggregate duties of Customs as provided under the Board's Circular dated 6.2.2001. As the words were introduced in the Notification No. 2/95 -CE date'd 4.1.1995 only w.e.f. 1.3.2002 by amending Notification No. 11/02 dated 1.3.2002, the method adopted by the Revenue for calculating the amount of duty equivalent to 50% of aggregate of duties of Customs is valid only after 1.3.2002 when the Notification was amended to this effect. The Larger bench of the Tribunal has agreed with the view taken by the Tribunal in the case of Futura Polymers Ltd. v. CCE, Chennai 2003 (54) RLT 405 (CEGAT -Del. : 2003 (106) ECR 396 (T)) wherein it has been held that as per the provisions of Notification No. 2/95, the amount of duty is to be calculated @ 50% of each of the duties of Customs. Thus, following the decision of the Larger bench of the Tribunal, we allow the appeals filed by the appellants.