Held, all excisable goods produced or manufactured in India are exigible to duty of Excise under Section 3 of the Act, the duties of Excise on any excisable goods, which are produced or manufactured by a 100 per cent EOU and allowed to be sold in India shall be an amount equal to the aggregate of the duties of customs which would be leviable under Section 12 of the Customs Act, 1962. The plea taken by the Assessee was that they were liable to pay duty under Section 3(1) of the Act together with customs duty on the imported raw material used in the manufacture of said finished goods, lying in the stock whereas the stand of the revenue was that Excise Duty under the proviso to Section 3(1) of the Act was payable on the finished goods with no customs duty being leviable on the raw materials used in the manufacture of finished goods.
