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of <h1>Duty liability clarified for project supplies: exports exempt, domestic sales incur duty</h1> <h3>M/s. Jain Irrigation Systems Ltd. Versus Commissioner of Central Excise, Nashik</h3> M/s. Jain Irrigation Systems Ltd. Versus Commissioner of Central Excise, Nashik - 2019 (369) E.L.T. 1803 (Tri. - Mumbai) Issues:1. Duty liability on supplies for a project awarded through international competitive bidding process.2. Eligibility for deemed exports and exemption from duty liability.3. Applicability of various notifications for duty-free clearance.4. Interpretation of Export Import Policy and entitlements for export-oriented units.5. Treatment of finished products under exemption notification no. 125/84-CE.6. Chargeability under Section 3 of Central Excise Act, 1944.7. Benefit of specific notifications for duty-free clearance.8. Computation of duty liability and remand for further scrutiny.Analysis:1. The appeal concerned duty liability on supplies made for a project awarded through international competitive bidding. The appellant, a 100% export-oriented unit, argued that the supplies should be considered as deemed exports and exempt from duty liability based on approvals and circulars. The Tribunal noted the undisputed facts regarding the nature of the appellant's unit and the project's funding, emphasizing the benefits of deemed exports under the Export Import Policy.2. The Tribunal concluded that while supplies for export-oriented units are entitled to certain benefits, finished products intended for sale in India are subject to duty liability under Section 3 of the Central Excise Act, 1944. The exemption notification no. 125/84-CE exempts goods not sold in India from duty, highlighting the distinction between exports and domestic sales triggering duty liability.3. The Tribunal discussed the applicability of specific notifications for duty-free clearance and the conditions under which such benefits could be availed. It emphasized the need for strict interpretation and adherence to the provisions of the Export Import Policy and relevant notifications for determining duty liability and exemptions.4. Regarding the computation of duty liability, the Tribunal remanded the matter back to the original authority for further scrutiny. It directed a reevaluation of the duty liability after applying eligible notifications and assessing the appellant's claim for a lesser assessable value. The Tribunal highlighted the importance of proper examination and computation in determining the final duty liability.In conclusion, the judgment addressed the duty liability issues concerning supplies for a specific project, deemed exports, exemption notifications, and the interpretation of relevant policies and notifications. It provided detailed analysis and guidance on the application of duty exemptions and the computation of duty liability, emphasizing the need for adherence to legal provisions and strict interpretation in such matters.
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