Circular No. 384/17/98-CX dated 20/3/98

Subject: Central Excise - Whether Additional Duties of Excise are leviable where 100% EOU is claiming exemption under Notification No. 8/97- CE, dated 01.03.1997-clarification

I am directed to say that representations have been received by the Board in the effect that if the EOU is claiming exemption under Notification 8/97-CE dated 1.3.97, the Central Excise Authorities are insisting on payment of additional duties of excise leviable under Section 3 of the Additional Duty of Excise (Textiles and Textile Articles) Act, 1978.

2. The matter has been examined by the Board.

3. Under Notification 8/97-CE, dated 1.3.97 finished goods, rejects, wastes and scraps if manufactured in i00% EOUs from wholly indigenous raw-material find is allowed to be sold in India, then the same is exempted from so much duty of excise leviable under Section 3 of the Central Excise Act, 1944 as is in excess of an amount equal to the duty of excise leviable under Section 3 of the Act on like goods produced or manufactured in India than in a 100% EOU, if sold in India.

4. Notification 55/91-CE dated 25.7.91 exempts excisable goods produced or manufactured in 100% EOUs from the whole of the duty of excise leviable under Section 3 of the Additional Duty of Excise (Textile and Textile Articles) Act, 1978.

5. In view of the above it is clarified that above mentioned two Notifications give specific exemption from payment of excise duty under two different Acts. Hence/the assessee who is claiming benefit of the Notification 8/97-CE dated 1.3.97 will be eligible to claim benefit under Notification 55/91-CE dated 25.7.91 and the same should not be denied to them.

Sd/-
(P.K.Sinha)
Under Secretary to the Government of India

[F. NO. 268/11/98-CX.8]

Presented by eximkey.com