TaxTMI 
TaxTMI 
2010 (3) TMI 517
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....tion of EPCG licences. The department took-up investigations and in the impugned order, duty demand for Rs. 66,63,270/- with interest has been confirmed and penalty of Rs. 15 Lakhs has been imposed on the first appellant namely M/s. Rimtex Industries and penalty of Rs. two Lakhs has been imposed on Shri Kalpeshbhai, partner, second appellant. 2. Learned advocate on behalf of the appellants submitted that the clearances were made under proper documents and with the knowledge of the department. In support of this contention, he drew our attention to various ARE-3 forms submitted by them and also to a letter of Assistant Commissioner, Surendra Nagar addressed to Assistant Commissioner, Jammu dated 13-12-2004, wherein he had requested for rewa....
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....licy. It is his submission that once the supplies are treated as deemed export, no payment of excise duty can be required. (iii) He relied upon several decisions of the Tribunal in support of various submissions. He also submits that even if it is held that duty was payable, since the issue involved the question of interpretation of law and clearances were made with the knowledge and approval of the department, no penalty on the appellants could have been imposed. 3. Learned DR on the other hand reiterates the observations made in the Order-in-Original and submits that duty demand has been correctly made. 4. We have considered the submission made by both the sides. We find that before the learned Commissioner also the same submissions we....
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....in the case of Sahajanand Technologies Private Limited - 2007 (210) E.L.T. 108 (Tri.-Ahmd.) is also not applicable to the present case. In fact, in Para 4, it has been observed that clearance from 100% EOU are subject to duty equal to that payable when like goods are imported. In fact in this Para, Tribunal has discussed the applicability of concessional rate of duty under Notification No. 55/03-Cus., dated 1-4-2003. From the clarification issued by the Ministry of Commerce and the order of the Tribunal what emerges is that for the purpose of levy of duty to supplies made to EPCG licence holders by 100% EOU, customs duty leviable has to be worked out on the basis of Notification No. 55/03-Cus. and the same has to be recovered as Central Exc....