Case Law Details
Hindustan Unilever Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
CESTAT Kolkata held that rejection of application for fixation of special rate under notification no. 32/99-CE and notification no. 31/2008-CE to new industrial units set up in North-Eastern States is incorrect and are in violation of law.
Facts- The appellant are engaged in the manufacture of Oral Preparations, Cosmetics, Hair Care & Skin Care Preparations. On 20.11.1997, the Central Government announced an Industrial Policy, inviting entrepreneurs to set up new industrial Units in North-Eastern States and promised that such Units would be exempt from payment of central excise duty and income tax for a period of 10 years from their date of commencement of their commercial production.
In order to avail of the benefits, the appellant set up three factories at Doomdooma Industrial Estate in Tinsukia District of Assam State.
Value addition for all goods falling under Chapter 33 i.e. “Cosmetics & Toilet Preparations”, being manufactured by the Appellants, was fixed at 56%, at Sr. No. 3 of the Table under Para 2A of the Notification No. 32/99-CE, as amended by the said Notifications. In other words, the Appellants were entitled to exemption/refund of 56% of the total duty payable on the goods manufactured and cleared by them, subject to the amount paid from PLA.
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