https://www.taxtmi.com/caselaws?id=118453 For a 100% export-oriented undertaking, the proviso to Section 3(1) of the Central Excise Act, 1944 applies only to authorised domestic clearances contemplated by the export policy and the relevant rules; clandestine diversion into the domestic tariff area is not treated as a lawful sale in India. In such cases, duty is assessed under the proviso on a customs-based valuation framework, including contemporaneous import data, rather than under the main charging provision. The article also notes that cum-duty treatment is unavailable where the assessee had no basis to assume duty-free clearance, depreciation on capital goods depends on lawful permission, and a wrong citation of the penalty rule does not invalidate confiscation or penalty absent prejudice. en-us Fri, 28 Jul 2006 00:00:00 +0530 Sat, 30 Jun 2012 17:16:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118453 For a 100% export-oriented undertaking, the proviso to Section 3(1) of the Central Excise Act, 1944 applies only to authorised domestic clearances contemplated by the export policy and the relevant rules; clandestine diversion into the domestic tariff area is not treated as a lawful sale in India. In such cases, duty is assessed under the proviso on a customs-based valuation framework, including contemporaneous import data, rather than under the main charging provision. The article also notes that cum-duty treatment is unavailable where the assessee had no basis to assume duty-free clearance, depreciation on capital goods depends on lawful permission, and a wrong citation of the penalty rule does not invalidate confiscation or penalty absent prejudice. Case-Laws Central Excise Fri, 28 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118453