Per Justice K.K. Usha :

These appeals are at the instance of two assessees. M/s Fabworth (India) Ltd. (hereinafter referred to as Fabworth) are engaged in the manufacture of all-wool worsted fabrics, wool-silk fabrics and poly-wool fabrics in its 100% export-oriented units. The processed fabrics are exported. M/s Woolworth (India) Ltd. (hereinafter referred to as Woolworth) is also having 100% EOUs where various kinds of yarns are manufactured and exported. Under the EXIM Policy they are entitled to numerous concessions. They are permitted to sell 25% of their production in the Domestic Tariff Area (DTA) i.e., within India, with prior permission of the Development Commissioner, and subject to payment of duty of excise under the proviso to Section 3(1) of the Central Excise Act, 1944 read with any Exemption Notification issued under Section 5A of the Central Excise Act. These facts are not in dispute.

2. The issue that has come up for consideration in these appeals is whether the appellants are liable to pay 50% of the countervailing duty (CVD) equivalent to the duties coming under Additional Duty of Customs under Section 3 of the Customs Tariff Act, 1975, additional duties of Ex