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2015 (12) TMI 806 - HC - Central ExciseExemption under Notification No. 50/2003-C.E. Dated 10.06.2003 - manufacture of various toiletry products containing alcohol - Assessee already paid excise duty under the Medicinal and Toilet Preparations (Excise Duty) Act, 1955 - Double taxation - Held that:- As per entry No. 84 of List-I (Union List) of 7th Schedule of the Constitution of India, medicinal and toiletry preparations containing alcohol are made subject matter thereunder. Under Article 268 of the Constitution of India, the excise duty on such products is leviable by Government of India but the same has to be collected through the State. From the impugned order, it is evident that the petitioner manufactures various toiletry products containing alcohol. The stand of the petitioner is that it has already paid excise duty under the Act of 1955. Hence, prima facie it seems that demand of excise duty from the petitioner under the Act would amount to taxing it twice. More so, vide notification dated 10.06.2003, the goods manufactured in the States of Himachal Pradesh and Uttrakhand are being exempted from excise duty for 10 years from the date of commencement of production under the Act. This issue has also not been considered by respondent No. 2. Hence, in our opinion, it would be expedient to remand the case back to respondent No. 2, for taking a decision afresh, after affording an opportunity of hearing to the petitioner and considering its stand including that raising the demand of any excise duty under the Act would tantamount to taxing it twice, more particularly, when the petitioner has already paid the excise duty under the Act of 1955. - Impugned order is set aside - Decided in favour of assessee.
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