9911796707
TMI Blog2017 (2) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... obiles is a 100% EOU; cleared the goods to their own unit which is in DTA, during the period 01.03.2006 to 31.03.2008 on stock transfer notes. It was noticed by the lower authorities that respondent had not paid Value Added Tax (VAT) on this stock transfer to their DTA unit hence, they are not eligible to take 4% of Special Additional Duty (SAD), as per Notification No.19/2006-Cus dated 01.03.2006. On the grounds that the goods are not exempted by the Sales Tax and having not discharged the Sales Tax, the liability to pay SAD arises. The adjudicating authority, after following due process of law, confirmed the demands raised. On an appeal, the first appellate authority, considering the law on the issue and also the provisions and clauses of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of notification was correctly denied by the adjudicating authority. 6. In our considered view, the Revenue's appeal has no merits for the simple reason that identical issue has been settled by the Tribunal in the case of Micro Inks (supra) wherein the bench, after considering all the arguments made in Para 10, specifically dwelled into the entire issue of notification and exemption of sales tax. We reproduce the same:- "10. We are unable to accept the contentions raised by the ld. Departmental Representative and the findings recorded by the adjudicating authority for more than one reason. Firstly, it is the fact that the inter unit clearance from EOU to DTA are not exempted from payment of sales tax by the State Government by any not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of assessee, in the absence of any evidence on record to show that the said products if cleared to DTA is exempt from payment of sales tax. It is to be noted that provisions of Central Sales Tax, 1956 recommends movements of goods inter State by raising stock transfer notes even to independent buyers/own units by non-payment of CST/VAT on such clearances, cannot be construed as an exemption granted by the State Government. We find that for the purpose of taking benefit of Notification 23/2003-C.E., as amended, the one and only condition specified in respect of the goods being cleared into DTA, is if the said goods are exempted by the State Government from payment of sales tax/VAT, in the present case there is no such notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured in a notified area, hence the Larger Bench came to the conclusion that for discharge of excise duty, the SAD has to be included. The terms of reference to the Larger Bench being totally different than the facts of the issue which is raised in these appeals; in our view the reliance placed by the Revenue on the ratio of the Larger Bench decision will not carry their case any further." Identical view has been expressed by the Tribunal in the case of VVF Limited vs. CCE, Belapur (supra) and STI Industries vs. CCE, Daman - 2015 (327) ELT 514 (Tri. Ahmd.). The Tribunal in these two cases had followed the above ratio laid down by Tribunal in the case of Micro Inks (supra). 7. In view of the facts and circumstances of the case and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
