COMMISSIONER OF CENTRAL EXCISE Vs. UNIWORTH LTD.

JUDGEMENT

(1.) HEARD both sides. Revenue is in appeal. Assessee 100% EOU have cleared reject or all Wool Fabrics and Poly -wool fabrics into DTA and para 9.9(a) of Exim Policy 1997 -2002 on payment on Central Excise Duty to the extent of 50% of Basic Customs Duty (BCD) and have not paid other duties viz Surcharge, Special Additional Customs duty and Countervailing Duty (CVD). They cleared goods under Notification No 2/95 -C.E. Two Show Cause Notice were issued demanding duty, for the period July, 99 to August, 99 and September, 99 to December, 99, equivalent to 50% of the duties not paid. The Commissioner dropped the demand for the period upto 15 -9 -99 on the grounds that though Section 3(1) was amended by Finance Act, 2000 with retrospective effect from 1982, Notification No. 2/95 -C.E. prescribing effective rate of duty leviable under Section 12 of the Customs Act was not so amended. Hence retrospective amendment to proviso to Section 3(1) will not have any impact up to 15 -9 -99 as Notification No. 38/99 -C.E., dated 16 -9 -1999 amended Notification 2/95 -C.E. prospectively, i.e., only from 16 -9 -1999 up to 15 -9 -1999 an EOU is to discharge only 50%. In view of the Larger Bench decision in the case Fabworth (I) Ltd. - : 2002 (143) E.L.T. 663 (Tri. -LB) holding that amendment vide Notification 38/99 -C.E., dated 16 -9 -1999 cannot be retrospective. No merits are found in the Revenues appeal same is required to be dismissed.