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2014 (3) TMI 94 - AT - Customs100% EOU - Benefit of exemption under Notification Nos. 6/97-C.E., dated 1-3-1997 and 23/2003-C.E., dated 31-3-2003 - Goods cleared without payment of duty in the Domestic Tariff Area - Held that:- for availing the benefit of aforesaid notifications, the rejects, wastes, scrap and remnants arising out of processing, manufacture, production, packaging of articles should be cleared to the Domestic Tariff Area on payment of applicable duty of excise. The question is, what is ‘the applicable duty of excise’ in respect of cotton waste. Notification No. 6/97 exempts cotton waste falling under Heading No. 52.02 of the Central Excise Tariff Act, unconditionally, produced or manufactured by a 100% EOU and allowed to be sold in India. Similarly, Notification No. 23/2003-C.E., dated 31-3-2003 also exempts cotton waste falling under Heading 52.02 when manufactured by a 100% EOU and allowed to be sold in India. These two Notifications specifically deals with the exemption on cotton waste manufactured in a 100% EOU and allowed to be sold in India and provides excise duty exemption on such cotton waste. Therefore, the applicable rate of duty of excise on cotton waste manufactured in a 100% EOU and allowed to be sold in India is ‘nil’ and the applicant has discharged the duty liability in accordance with the aforesaid notifications. Therefore, prima facie, we are of the view that the appellants have fulfilled the terms and conditions of para 3 of the Notification 52/2003-Cus. and para 6 of the Notification No. 22/2003-C.E. and we do not find any infirmity with the said availment - Decided in favour of assessee.
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