Emtee Poly Yarn Pvt Ltd Vs C.C.E. & S.T.-Vapi (CESTAT Ahmedabad)
The case of M/s. Emtee Poly Yarn Pvt. Ltd. v. C.C.E. & S.T. VAPI [Excise Appeal No. 11418 of 2014 dated September 11, 2023], heard by the CESTAT Ahmedabad, revolved around the applicability of Additional Excise Duty (“A.E.D.”) at a nil rate on the day of clearance for yarn. The tribunal’s decision, rendered on September 11, 2023, allowed the appeal and annulled the demand for Excise Duty, concluding that a nil rate of A.E.D. on the day of clearance should be applied.
CESTAT, Ahmedabad allowed the appeal and set aside the demand, holding that the effective NIL rate of Additional Excise Duty (“A.E.D.”) on the day of clearance would be applicable for the purpose of calculation of A.E.D.
Facts:
M/s. Emtee Poly Yarn Private Limited (“the Appellant”) manufactured yarn in 2004. Manufacturing goods were subject to A.E.D. under the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978. However, as per Notification No. 31/2004 dated July 9, 2004, the A.E.D. on textiles were dispensed with. However, the Revenue Department (“the Respondent”), stated that the date of manufacturing goods would be relevant in determining the levy of Excise Duty. Therefore, the Department raised a demand for payment of A.E.D. on goods produced before the enactment of the Notification.
Thereafter, the Respondent vide OIA-VAP-EXCUS-000-APP-492-13-14 dated February 12, 2014, (“the Impugned Order”) upheld the demand raised, for payment of A.E.D. by the Appellant.
Aggrieved by the Impugned Order, the Appellant filed an appeal before the Tribunal.
Issue:
Whether the effective rate of A.E.D. on the day of clearance or manufacturing would be applicable for calculating A.E.D. to be levied?
Held:
The CESTAT, Ahmedabad in Excise Appeal No. 11418 of 2014, held as under:
