T T Limited Vs Commissioner (CESTAT Allahabad)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad arose from an Order-in-Appeal dated 18.02.2025, which had upheld an Order-in-Original dated 10.10.2024 passed by the adjudicating authority concerning refund and interest on an amount paid by the appellant.
The appellant was a 100% Export Oriented Unit engaged in the manufacture of cotton yarn under Chapter 52 of the Central Excise Tariff Act, 1985. The Superintendent of Customs and Central Excise, Range-1, Gajraula issued a letter dated 01.12.2000 demanding payment of Additional Duty of Excise (AED (T&T)) on yarn cleared to the Domestic Tariff Area with effect from 01.03.2000 under Section 3(1) of the Central Excise Act, 1944 and Notification No. 08/97 dated 01.03.1997 as amended by Notification No. 11/2000 dated 01.03.2000. The appellant responded on 16.06.2001 stating that such duty was not payable under Notification No. 55/91 dated 25.07.1991 and referred to an earlier adjudication order dated 23.04.2001.
Subsequently, the Superintendent issued another letter dated 12.10.2001 asserting that the appellant was liable to pay duty along with interest at 24% as per a departmental circular dated 19.10.2000. The appellant reiterated its position that duty on domestic tariff area sales of cotton yarn was exempt under Notification No. 55/91. According to the appellant, due to directions of the Superintendent, it deposited ₹22,30,445 through 32 challans between 30.12.2000 and 29.03.2003 under protest. The protest was formally communicated through correspondence indicating that the duty was not payable.
