[Order]. - The appellant’s company was engaged in the manufacture of recycled ferrous and non-ferrous metal scrap from imported wire scrap. Certain DTA sales have been made by the unit on payment of Central Excise duty (@ 50% of the aggregate duties of Customs) under exemption Notification No. 2/95-C.E. It was found that DTA sales valued at Rs. 1,52,659/- exceeded the 50% limit prescribed for DTA sales. Therefore, appellant company on direction paid differential duty and interest on such excess DTA clearance. The net effect was that on DTA clearances valued at Rs. 1,52,659/- which was found exceeding the permissible limit, full excise duty equal to aggregate duties of Customs was paid (Proviso to Section 3 of the Central Excise Act).
2. The appellant were further issued notice dated 30-11-2005 which has been decided under the impugned order dated 25-4-2006. Under the Order, the learned original authority has inter alia confirmed the demand of Customs duty amounting to Rs. 62,503/- being the Customs duty forgone on imported materials (wire scrap) used in the manufacture of clearance to DTA exceeding the permissible limit.
3. On an appeal filed by the appellants, the Commissioner (Appeals) set aside the order of the Original Adjudicating Authority and allowed the appeal relying upon the decision of the Tribunal in Sarala Polyester Ltd. v. Commissioner of Central Excise, Surat-II reported in (Tri.-Ahmd.) wherein it was held that once duty has been discharged on the finished products, there is no need to demand duty on the inputs.
4. The learned Advocate Shri P.M. Dave appearing on behalf of the respondents submits that Commissioner (Appeals) order relies upon the decision of the Tribunal and the issue is squarely covered by the decisions. I have considered the submissions. There is no doubt that the issue is squarely covered by the decision relied upon by the Commissioner (Appeals) and there are several decisions of the Tribunal on the same lines. In view of the above appeal filed by the Revenue has no merits and accordingly is rejected.
(Pronounced in Court)