TMI Blog2008 (9) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 - Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Member (T) Ms. Joy Kumari Chander, JCDR, for the Appellant. S/Shri Prakash Shah and D.H. Mehta, Advocates, for the Respondent. [Order per : T.K. Jayaraman, Member (T)].- Revenue has filed this appeal against Order-in-Appeal No. 116/2006-C.E. dated 23-7-2006 passed by the Commissioner of Customs and Central Excise (Appeals), Visakhapatnam. 2. Mrs. Joy Kumari Chander, learned JCDR appeared on behalf of the revenue and S/Shri Prakash Shah and D.H. Mehta, learned advocates appeared on behalf of the respondents. 3. We heard both sides. The respondent is a 100% EOU engaged in the manufacture of grey fabrics which are excisable. The grey fabrics were cleared to holder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act which reads as follows: "Provided that, unless specifically provided in such notification, no exemption therein shall apply to excisable goods which are produced or manufactured- (i) in a [free trade zone (or a special economic zone)] and brought to any other place in India; or (ii) by a hundred per cent export-oriented undertaking and [brought to any place in India]." The duty of Rs. 39,04,806/- was demanded in terms of Section 11A of Central Excise Act, 1944; equal penalty was imposed under Rule 25 of the Central Excise Rules, 2001/2002 and interest was also demanded under Section 11AB of the Central Excise Act, 1944. The appellants were aggrieved over the impugned order and approached the Commissioner (A). 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion is not relevant. Further, the Delhi Bench of the Tribunal in the case of Ratangiri Textiles Ltd. v. Commissioner of Central Excise, Jaipur-II - 2003 (161) E.L.T. 975 (Tri.-Del.) has also held that in respect of clearances made by 100% EOU to domestic tariff area, the rate of duty should be the effective rate of duty as fixed under Exemption Notification and not tariff rate. In other words, if there is an exemption from Central Excise duty, then consequently, Additional Duty of Customs will also not be leviable. In the said decision, the Tribunal has relied on the decision of the Hon'ble Gujarat High Court in the case of Lucky Star International v. UOI - 2001 (134) E.L.T. 26 (Guj.) and Varsha Exports v. UOI - 2000 (40) RLT 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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