Exemption for DTA clearances from a 100% Export Oriented Unit upheld where inputs came from another export unit.

Goods manufactured by a 100% Export Oriented Unit and cleared to the Domestic Tariff Area were treated as eligible for exemption under Notification No. 8/97-CE where the raw materials or goods were procured from another 100% Export Oriented Unit. The controlling principle was that such supplies constitute raw materials or goods produced or manufactured in India for the purpose of the notification, as affirmed by the Supreme Court. On that binding basis, the exemption was available and no further adjudication on the reference was required, so the reference was rejected as having no surviving issue for decision.

---

---

Issues: Whether goods manufactured by a 100% Export Oriented Unit and cleared to the Domestic Tariff Area, where the raw materials or goods were procured from another 100% Export Oriented Unit, are eligible for exemption under Notification No. 8/97-CE dated 01.03.1997.

Analysis: The issue stood concluded by the Supreme Court's decision affirming that raw materials or goods supplied by another 100% Export Oriented Unit constitute raw materials or goods produced or manufactured in India for the purpose of the notification. In view of that binding determination, no further adjudication on the reference was required.

Conclusion: The exemption was held to be available, and the reference was rejected as no longer surviving for adjudication.

---