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Regarding Central Excise - Whether Additional Duties of Excise are
leviable where 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a> is claiming exemption under Notification No. 8/97-CE,
dated 01.03.1997- Clarification
Circular
No. 384
dated 20th March 1998
I
am directed to say that representations have been received by the Board to 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 100% EOUs from wholly indigenous raw-material and
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 i excess
of an amount equal to the duty of excise leviable under Section 3 of the Action
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
Notification 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
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