NAHAR FIBRES Vs. CCE

JUDGEMENT

(1.) This issue involved in this case is whether the AED under Additional duties of Excise (Textile and Textile Articles) Act 1978 @ 15% of BED is Chargeable when the EOU clears the goods in DTA. The original authority confirmed a demand of Rs. 1,25,466/ - and imposed an equal amount of penalty on the appellants on the ground that from 1.3.2000 onwards, the appellants had cleared cotton yarn in DTA and paid only the basic duty and not the additional excise duty under Additional Duties of Excise (Textile and Textile Articles) Act 1978. The Commissioner (Appeals) also confirmed the order of the original authority based on the Board's Circular No. 554/50/2000 -CX dated 19.10.2000 for interpretation of Notification No. 8/97 -CX dated 1.3.1997. However, the penalty imposed by the adjudicating authority was set aside by him. The appellants challenged the Circular of the Board No. 554/50/2000 -CX dated 19.10.2000 before the Supreme Court and the Supreme Court in its order in the case of Nahar Industrial Enterprises Ltd. v. Union of India quashed the Board's Circular dated 19.10.2000 and held as under:

(2.) It was, therefore, pleaded by the appellants that the appeal may be allowed.

(3.) Shri P.M. Rao, SDR appearing for the Revenue conceded the position that AED (T&TA) is not chargeable on the clearance of the cotton yarn during the relevant period.