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2023 (9) TMI 453 - AT - Central ExciseLevy of Additional Excise Duty under Additional Duties Of Excise (Textiles And Textile Articles) Act, 1978 - date of manufacture of goods is decisive in determination of levy in case of Excise Duty - HELD THAT:- Both the lower authorities upheld the demand relying upon the decision in the matter of COLLECTOR OF C. EX., HYDERABAD VERSUS VAZIR SULTAN TOBACCO CO. LTD. [1996 (2) TMI 138 - SUPREME COURT] in which it was held that even if goods were manufactured prior to the date of the same becoming dutiable, but were cleared later, the same become subject of levy of duty from the date of levy and such goods shall not be leviable to Excise Duty, if produced earlier. In short, the Hon’ble Supreme Court held that it is point and date of levy which is important and not the point or date of clearance of the goods to determine, if the goods manufactured were dutiable or not - The Hon’ble Apex Court also held the recovery of duty according to the “date of removal” does not make removal to be the taxable event for Central Excise. While it is true from the analysis of aforesaid decisions that the impugned goods i.e. Yarn in this instance were taxable as on the date they were manufactured as levy was subsisting. On the date of clearance, on withdrawal of levy, the applicable rate of A.E.D had become “Nil”. Therefore as, on the date of clearance “Nil” rate of A.E.D. shall be applied to the goods cleared. The demand does not sustain. Appeal is therefore allowed.
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