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2018 (6) TMI 4 - AT - Central ExciseLiability to pay duty on the goods cleared prior to 1.3.2002 - Effect of withdrawal of N/N. 3/2001-CE dated 1.3.2001 - Budget day clearances - removal of cotton plain reel hanks from the factory without payment of duty after withdrawal of exemption notification - Duty Demand - According to department, the appellant had removed cotton plain reel hanks from the factory after the withdrawal of exemption on 28.2.2002 without payment of central excise duty - whether the appellants are liable to pay duty on the goods cleared by them prior to 1.3.2002? - Held that:- Even if it is considered that the goods are cleared on 28.2.2002, the withdrawal of exemption by Notification No. 13/2002 dated 1.3.2002 would be effective as per the Notification only from 1.3.2002. Restrictions on removal of Capital Goods - Rule 30A of Central Excise (No.2) Rules, 2001 - the appellants have neither obtained permission nor filed undertaking - Held that:- Rule 30A provides that the manufacturer who intends to clear goods during the period mentioned in the Rule has to obtain permission and also file an undertaking - In the present case, there is no such undertaking filed by the appellant. Even if we consider that there has been procedural infraction on the part of the appellant in not taking permission from the Commissioner to clear the goods on Budget day, the notification rescinding the exemption has come into force only from 1.3.2002. Their clearances have been made on 28.2.2002 when the exemption notification was still in force - duty demand do not sustain. The Tribunal in the case of Vellamalai Tea Factory [2013 (12) TMI 394 - CESTAT CHENNAI] has considered an identical issue with regard to Budget day clearances and Tribunal after taking cognizance of Sections 3 and 4 of Provisional Collection of Taxes Act, 1931, held that duty cannot be collected for the clearances made by the appellant before midnight when the notification came into existence (1.3.2002). Appeal allowed - decided in favor of appellant.
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