Case Law Details
Blue Mount Textiles Vs CCE (CESTAT Chennai)
CESTAT Chennai held that the demand of duty in respect of semifinished goods cannot sustain. Accordingly, the duty paid thereon is duly refundable.
Facts- During the year 2011, they intended to exit the EOU scheme. They obtained an ‘in principle’ exit permission from MEPZ, Chennai and then, worked out the duty incidence. The appellants, thus, remitted the duty on both imported goods as well as indigenously procured excisable goods and goods in the nature of finished and semi-finished goods produced and held as stock on the date of de-bonding of the unit. Subsequently, they submitted a letter to the Department along with work-sheet and payment details with a request to issue ‘No Due’ Certificate in the matter. After verification, ‘No Due’ Certificate was issued and subsequently, the Final Exit Order was issued to the appellants.
The appellants then filed refund claim on the ground that they had paid an excess amount of duty. The plea on the part of the appellants was that they are eligible to pay duty on the manufactured items only as per Sl. No. 2 of Notification No. 23/2003-C.E. dated 31.03.2003. It was thus contended that they are only liable to pay the duty on the manufactured items as per the above Notification at the rate of 50% of the Basic Customs Duty (BCD) to arrive at the aggregate dues. However, the Range Officer, Mettupalayam Range, directed them to calculate the Basic Customs Duty without considering the method stipulated in Notification No. 23/2003-C.E. dated 31.03.2003. In such circumstances, they have paid the excess amount of duty.
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