Nova Petrochemicals Ltd. Vs. C.C.E.- Ahmedabad-II - (Customs, Excise and Service Tax Appellate Tribunal) (26 Jun 2019)
Exemption of excise duty would be applicable to NCCD also, as same is surcharge
MANU/CS/0117/2019
Excise
The issue involved in the present appeal is that, the Appellant has not paid National Calamity Contingent Duty on Polyster Filament Yarn during the period 1st June, 2003 to 30th April, 2004 cleared to 100% EOU and that cleared for captive consumption. They were issued show cause notice for recovery of same. The demand was confirmed against them vide impugned order. Hence the present appeal.
It is submitted that, the supplies made to 100% EOU are in the nature of export under Bond as allowed under Rule 19 of the Central Excise Rules, 2002. Appellant further submits that, the clearances to EOU are exempted by virtue of Notification No. 22/2003 - CE dated 1st March, 2003. In respect of clearance for captive consumption, he submits that, Notification No. 67/95 - CE dated 16th March, 1995 has been issued under Section 5A of Central Excise Act, is applicable to NCCD also since it is surcharge and hence in the nature of excise duty only.
The issue is no more res-integra in the light of judgments cited by the Appellant. The Hon'ble Apex Court in case of M/s. Bajaj Auto Ltd. has held that, exemption of excise duty would be applicable to NCCD also as the same is surcharge. Further in the light of judgments cited by the Appellant, the demand of NCCD on goods cleared for captive consumption and to 100% EOU is not sustainable. The impugned order is set aside. The appeal is allowed with consequential reliefs to the Appellant.
Relevant : Bajaj Auto Limited vs. Union of India (UOI) and Ors. MANU/SC/0417/2019
Tags : DEMAND NCCD LEGALITY
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