Case Law Details
A.R.Stanchem Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that 100% EOU for clearance in DTA is entitled for benefit of notification no. 2/2008-CE dated 01.03.2006 for clearance of Linear Alkyl Benzene Sulphuric Acid and notification no. 4/2006-CE dated 01.03.2006 for clearance of Spent Sulphuric Acid.
Facts- The appellant is a 100% Export Oriented Unit (EOU) and is manufacturing Linear Alkyl Benzene Sulphuric Acid (LABSA) falling under Central Excise Tariff No. 34029091 and Spent Sulphuric Acid emerging as a by-product by Heading No. 28070010 out of the inputs i.e. Liner Alkyl Benzene Sulphuric Acid and Spent Sulphuric Acid. In terms of Notification No.2/2008 dated 01.03.2008, the appellant was paying 14% duty ADV. They are clearing Spent Sulphuric Acid to the fertilizer companies, which are exempted from payment of duty in terms of notification no. 4/2006-CE dated 01.03.2006 as amended.
The Revenue is of the view that the said Notifications were issued u/s. 5A (1) of the Central Excise Act, 1944. The proviso to the said Section provides that under exemption of Section 5A shall not apply to excisable goods, which are produced or manufactured by a 100% EOU and brought to any place in India. Therefore, the appellant is not eligible for those exemption Notifications.
Conclusion- Held that in respect of all goods under any Chapter, the Central Government exempts goods from so much of duty of excise leviable thereon is in excess of the amount equal to 50% of the duty leviable under Section 3 of the Central Excise Act, 1944, provided that the duty payable with this Notification in respect of the said goods shall not be less than the duty of excise leviable on the like goods produced and manufactured outside EOU, which is specified in the said schedule read with any other relevant Notification issued under Section 5A(1) of the Central Excise Act, 1944.
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