2010 (12) TMI 238 - AT - Central Excise

NCCD - whether during the period from 1/3/01 to 16/10/02, NCCD was chargeable on the Additive mixture manufactured and captively consumed by the respondent in manufacture of Chewing Tobacco - with the introduction of NCCD, the exemption from NCCD in respect of goods cleared for captive consumption was not provided by issue of an exemption Notification under Section 5A - Such an exemption Notification No. 52/02-CE was issued only on 17/10/02 without any retrospective effect - However, since in this case, there was no intention to evade the NCCD, penalty under Rule 25 (1) is not warranted – Accordingly the appeal is dismissed.

The issue of revenue neutrality was decided by the Larger Bench of the Tribunal in the context of question as to whether or not there was intention on the part of the assessee to evade the payment of duty and the question before the Tribunal was not as to whether in a revenue neutral situation, the duty was required to be paid or not. In the case of Jay Yuhshin Ltd. vs. CCE,New Delhi(2000 -TMI - 48829 - CEGAT, NEW DELHI), it is not the decision of the Tribunal that in a revenue neutral situation the assessee is not required to pay the duty.