TMI Blog2018 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... learances. When the goods are manufatured by EOU, they are treated as if they are manufactured outside India and when they are cleared to domestic tariff area, an excise duty is levied equivalent to the Customs Duty leviable on similar goods. This includes both the Basic Customs Duty as well as CVD which is equal to all the excise duties leviable on similar products. As far as the CVD component is concerned, the question as to whether it should be calculated after taking into account the excise exemption notifications, if any, available for the goods or otherwise is the question. During the relevant period Notification No.31/2004 and Notification No.32/2004 have exempted all goods from AED (T TA) and AED (GSI) - when similar goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e duty leviable under Central Excise Act. Sl.No.5 provided an exemption in excess of an amount equal to 50% of the aggregate duty not reduced by any other notification in the time being in force. It further provides that 50% of the aggregate duty leviable on the goods, shall be apportioned in the ratio of 2:1 between the Central Excise duty and Additional Excise Duty (Goods of Special Importance). Show Cause Notices were issued to the appellant demanding Additional Excise Duty (GSI) + Education Cess for the period covered by the Appeal No.E/672/2007. For the periods covered by E/673,674 675/2007, demands were raised for collection of AED (Textiles and Textile Articles). For further periods covered by E/603 604/2009, the demands were rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said notification provided that the exemption contained therein shall not apply to such goods if brought to any other place in India. This notification rescinded the earlier notifications. The lower authorities have rejected their contention that the Notification No.24/2003-CE exempts them from AED (T TA) and AED (GSI) relying on the proviso thereto. As an alternative argument, it was further contended that Notification No.18/1996-CE dated 23.07.1996 as amended by Notification No.11/2002-CE dated 01.03.2002 exempted all goods under heading 5208 from payment of AED (T TA). This notification was rescinded vide Notification No.33/2004 and replaced by Notification No.31/2004 again exempting the goods from AED (T TA). (3) Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such, the impugned order dated 17-3-2011 passed by DGEP i.e., respondent No.3 is set aside and writ of mandamus is being issued directing the respondents to allow benefit of exemption Notification No.50/2003-CE, dated 10-6-2003 to be given to the petitioners and further direction is being issued not to demand differential excise duty from the petitioners consequent upon setting aside the order dated 17-3-2011 of DGEP and all connecting proceedings initiated against the petitioners shall also stand set aside. As such, the petitioners are entitled to the benefit of exemption Notification No.50/2003-CE, dated 10-6-2003 and also entitled for making goods by way of DTA clearances from the petitioner unit in reference to the aforesaid exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Act, the excise duties levied on the goods produced or manufacturer in a 100% EOUs shall be equal to aggregate of duties of the Customs which would be leviable if similar goods were imported to India. In other words, when the goods are manufatured by EOU, they are treated as if they are manufactured outside India and when they are cleared to domestic tariff area, an excise duty is levied equivalent to the Customs Duty leviable on similar goods. This includes both the Basic Customs Duty as well as CVD which is equal to all the excise duties leviable on similar products. As far as the CVD component is concerned, the question as to whether it should be calculated after taking into account the excise exemption notifications, if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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