Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
EOU Appellant Directed to Deposit Rs.2 Lakhs for Duty Waiver Appeal The Tribunal directed the appellant, a 100% Export Oriented Unit (EOU), to deposit an additional Rs.2 lakhs within eight weeks in an application for ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
EOU Appellant Directed to Deposit Rs.2 Lakhs for Duty Waiver Appeal
The Tribunal directed the appellant, a 100% Export Oriented Unit (EOU), to deposit an additional Rs.2 lakhs within eight weeks in an application for waiver of duty under Notification No.30/2004-CE for goods cleared to the Domestic Tariff Area (DTA). The Tribunal held that Notification No.23/2003-CE applied to such goods, not Notification No.30/2004-CE, and waived the pre-deposit of the remaining dues upon the deposit of the specified amount, with recovery stayed pending the appeal. Compliance was required by a specified date.
Issues: Application for waiver of duty under Notification No.30/2004-CE for 100% EOU clearance to DTA; Applicability of Notification No.23/2003-CE and Notification No.29/2004-CE; Financial hardships claimed by the appellant.
The judgment addresses the application for waiver of duty amounting to Rs.11,09,624 filed by the appellant, who is a 100% Export Oriented Unit (EOU) clearing goods to the Domestic Tariff Area (DTA) under Notification No.30/2004-CE. The Revenue argues that this notification does not apply to 100% EOU. The appellant contends that the demand was made under Notification No.23/2003 along with Notification No.29/2004-CE, issued under Section 5A of the Central Excise Act, 1944. The appellant also cites financial hardships due to significant losses incurred by the company.
The Revenue relies on a Tribunal decision in the case of M/s Webel-Sl. Energy Systems Pvt. Ltd. vs. Commissioner of Central Excise, Kolkata-III, where it was held that the Notification issued under Section 5A does not apply to goods cleared by 100% EOU to DTA, directing the assessee to deposit 50% of the duty demanded. However, the impugned order in the present case by the Commissioner (Appeals) states that Notification No.23/2003-CE applies to goods cleared by 100% EOU to DTA, not Notification No.30/2004-CE dated 9.7.2004, leading to the conclusion that total waiver of pre-deposit is not warranted.
Considering the facts and financial hardships pleaded by the appellant, the Tribunal directs the appellant to deposit an additional Rs.2 lakhs, along with the amount already paid, within eight weeks. Upon this deposit, the pre-deposit of the remaining dues is waived, and recovery is stayed during the pendency of the appeal, with a compliance report due on 13.9.2012.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
