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2017 (1) TMI 546 - CESTAT MUMBAI100% EOU - short-payment of duty - an export oriented unit was required, under section 3 of Central Excise Act, 1994, to discharge duty on domestic clearances by payment of duty at a rate equivalent to that charged on like goods when imported into India. The adjudicating authority, however, took note of the exemption in N/N. 23/2003-CE dated 31st March 2003, which replaced N/N. 2/95-CE dated 4th January 1995, permitting clearance at half the duty to be so levied and, as the conditions stipulated therein had been complied with, allowed the benefit of that exemption - Held that: - On the issue of levy of special excise duty, we observe that there is no exemption granted in so far as this element of tax is concerned. Undoubtedly, this is a countervailing measure and is refunded to traders who are subject to sales tax upon sale of imported goods. The intent of the notification is to place the domestic procuring entity at par with supplier of imported goods. The levy of duty under section 3 of Central Excise Act, 1944 on clearances effected domestically includes all duties leviable under all the statutes relevant to imported goods and, hence, domestic area clearance cannot be excused from leviability. It may also be noted that the exemption to imported goods is administered though a refund mechanism with sanction accorded by customs authorities of place of import. A parallel provision does not exist for export oriented units whose domestic clearances are not within the jurisdiction of Customs Houses which administer the refund mechanism. The availment of extended period of limitation and imposition of penalty under section 11AC of Central Excise Act, 1944 cannot be faulted - appeal rejected - decided against appellant.
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