TaxTMI 
TaxTMI 
2009 (8) TMI 519
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....rted were cleared availing exemption under Notification No. 53/97-Cus., dated 3-6-97. Indigenous goods were procured availing exemption under Notification No. 1/95-C.E., dated 4-1-95. These notifications extended exemption from duties of customs/excise, as the case may be, payable in respect of goods procured by an EOU in connection with manufacture and packaging of articles for export out of India. Goods involved were door closures, door fittings, air-conditioners, ball bearings, radio modem, epoxy primer etc. On a tentative finding that the EOU had availed inadmissible exemption in respect of these goods during the period August, 1998 to May, 2002, a show cause notice was issued proposing to recover the exemption availed by DRL. Adjudicat....
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....er of P or P medicines as per the Drugs and Cosmetics Act, 1940. They submitted extracts of Drugs and Cosmetics Act, 1940 which laid down elaborate safeguards to be ensured by a manufacturer in the interest of high standards of cleanliness and hygiene in the manufacturing premises, laboratory etc. The appellants were required to keep the factory dust free and sterile. They were also required to maintain clean air and controlled temperature in identified areas of the factory etc. In order to maintain the floor scratch free and dust free, they had to maintain epoxy flooring/lay anti-septic carpet made using epoxy primer. The impugned goods had been brought into EOU for use in connection with manufacture of export goods as prescribed in the tw....
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....f the goods, in the manufacture of products meant for export, to qualify for the exemption. In determining which were the capital goods eligible for exemption in terms of the said Notification, peculiarities of the particular industry were required to be kept in mind. The Hon'ble Court held that in the case before them, the appellants had failed to establish that the goods such as tables, chairs, air-conditioner etc. were eligible for the benefit with evidence of their participation in the manufacture of export goods. We find that Notification No. 1/95-C.E. also lays down that the EOU shall export goods manufactured wholly or partly from the goods covered by the notification for the period stipulated by the Board/Committee set up for the pu....
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....ant to extend the benefit claimed. Exemption notification had to be strictly construed. We find that this Notification No. 123/81-C.E. was replaced by Notification No. 1/95-C.E., dated 4-1-95 in question and allowed the same benefit to same goods listed in the table to the notification. 6. We find that the Notification No. 1/95-C.E., dated 4-1-95 does not contain the condition for which the Apex Court had held that the impugned benefit depended on the participation of the goods in the manufacture of export goods. Such capital assets were capital goods envisaged in the notification. It was also held that in deciding which were capital goods the peculiarities of the particular industry were relevant. This condition read as follows: "the....
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....ons to keep an aseptic environment in the factory. Therefore such goods as are required to maintain hygienic environment are necessary for the EOU in its working and they conform to 'capital goods' of the two notifications. 8. DRL has imported/procured locally, doors, door hinges, door closure, epoxy primer, bearings, air-conditioner, radio modem etc. We find that the goods allowed to be procured in connection with production and packaging of export goods may not cover construction materials to set up the factory. DRL has explained that epoxy primer was necessary to paint the floor to help keep the cleanliness required. DRL has to explain the nexus between various other capital goods procured and the manufacture or packaging of export go....