TaxTMI 
TaxTMI 
2009 (3) TMI 524
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....are 100% EOU engaged in the manufacture of grey cotton fibres. For the period from April 2001 to July 2002, they cleared the fabrics to a number of customers against Advance Release Orders (ARO) issued in terms of Duty Free Replenishment Certificates (DFRCs). For clearing the fabrics, the assessees followed the necessary procedure by applying to the Deputy Commissioner of Central Excise for supply of goods to DFRC licence holders. The assessees obtained permission of the Development Commissioner to clear the goods in DTA. While giving details, the assessees had indicated the physical and deemed exports separately and claimed permission to clear 50% of the quantities indicated as physical exports in the DTA. The DTA permission was given by t....
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....order (i) for restricting the demand to CVD and (ii) for dropping the demand for the longer period. 4. The learned advocate for the assessees urged the following points. (i) It was urged that this issue has been settled in Maruti Cottex Ltd. v. CCE - 2005 (183) E.L.T. 393 affirmed by the Apex Court as reported in 2007 (215) E.L.T. A102 (S.C.). In the said decision, the Tribunal examined the applicability of Notification No. 125/84-C.E. to clearances made by an EOU to DFRC holders. It was held that such clearances would be treated as "goods not allowed to be sold in India" and hence they will be eligible to exemption under Notification No. 125/84-C.E. As the issue has been settled in favo....
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....-5-2001 viz., "allowed to be sold in India" has, been substituted by the expression "brought to any other place in India". It was stated that the above amendment does not affect the operation of the Notification, since the Notification itself has not been amended. It was submitted that the expression "brought to any other place in India" would cover two situations as far as a 100% EOU is concerned. (a) Goods cleared into the DTA with the permission of the Development Commissioner which would be categorized as "goods allowed to be sold in India" and would not be exempted under Notification No. 125/84-C.E. but would be eligible to the benefit of Notification No. 2/95-C.E., dated 4-1-95. (b....
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....04 (177) E.L.T. 722 (T) = 2004 (62) RLT 293. 5. The learned departmental representative reiterated the department's contentions in the revenue's appeal. 6. We have gone through the records of the case carefully. The show cause notice covers two issues. (1) A demand for the period from 1-4-2001 to 16-5-01 demanding Basic Customs Duty and Special Additional Duty; and (2) The second demand is for the period from 1-4-01 to 31-7-02 for the CAD. Revenue contended that assessees were not exempted from payment of basic customs duty, countervailing duty and special additional duty for the period from 1-4-2001 to 16-5-2001 for the reason that Notification No. 28/2001-C.E. was issued only on 16-5-2001. It is the contention of the ass....