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2023 (11) TMI 145 - AT - Central ExciseLevy of Additional duty of excise - clearance of pre-budget stock after 10.07.2014 - HELD THAT:- The Finance Act 2014 introduced an additional duty of Excise (AED) on waters including mineral water and aerated waters containing sugar or other sweetening matter falling under chapter heading 220210. d) The changes in the Finance Act 2005 were announced on 10.7.2014 and it was understood by the Appellant that the same shall be effective from midnight 10/11 July 2014. It is relevant to mention that the declaration under Provisional Collection of Taxes Act, 1931 provided that clause 110 of the Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931. The issue is no longer res-integra and is settled by the judgment of Hon'ble Supreme Court in the case of COLLECTOR OF C. EX., HYDERABAD VERSUS VAZIR SULTAN TOBACCO CO. LTD. [1996 (2) TMI 138 - SUPREME COURT]. The Hon'ble Supreme Court while dealing with special duty of excise has held that "Section 3 cannot be read as shifting the levy from the stage of manufacture or production of goods to the stage of removal. The levy is and remains upon the manufacture or production alone. Only the collection part of it is shifted to the stage of removal. Once this is so, the fact that the provisions of the Central Excise Act are applied in the matter of levy and collection of special excise duty cannot and does not mean that wherever the Central Excise duty is payable, the special excise duty is also payable automatically. That CCE, Hyderabad Vs. Vazir Sultan Tobacco Company reiterates a settled position that duty of excise is leviable on 'manufacture' or production of the goods as contemplated by Entry 84 of List-1 of the Seventh Schedule to the Constitution. The mere fact that, for the sake of convenience, the duty is collected at the stage of removal cannot and does not change the character of the tax. It is upon the manufacture or production of goods and not on any other basis. Once the levy is not there at the time when the goods are manufactured or produced, it cannot be levied at the stage of removal of the said goods. The impugned order cannot be sustained and the same is accordingly set aside - the appeal filed by the appellant is allowed.
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