1999 (2) TMI 618

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....s of Notification No. 123/81 to items such as A.C. sheets, Air-conditioners, Fire-proof doors, Syntex Water Tanks, Flush doors, Lighting Accessories, Furniture, Fixtures and Typewriters brought in by the appellants who are a 100% Export-Oriented Unit (100% EOU) on the ground that these items are not covered by the expression 'Capital goods, components, raw materials, spares and packaging materials' used in the notification and do not satisfy the condition in the notification of being used in connection with manufacturing and packaging of articles, and imposing of penalty of Rs. one lakh. 2. We have heard Shri T. Vishwanathan, learned Advocate and Shri V.M. Udhoji, learned DR. The chart filed by the appellants at Page 57 of the paper....

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....sories " -do-" It has already been held by the Tribunal in the case of Everest Building Products v. Collector of Central Excise reported in 1994 (71) E.L.T. 687 that asbestos sheets used for construction of factory shed in Kandla Free Trade Zone are used in connection with the manufacture of goods meant for export and are hence eligible to the benefit of Notification No. 272/79 which exempts excisable goods 'when brought into the Kandla Free Trade Zone from the factory of the manufacture situated in other parts of India for use by the industries located in the said zone in connection with the production of goods intended solely for export.....' 3. In the case of C.C.E. v. Kudremukh Iron Ore Company Ltd. reported in 1988 (36....

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....nufacturing departments and to 5 (out of 20) air-conditioners utilised in the R&D Section for running of the testing machines required for testing the quality of the unit. We therefore hold that the A.C. sheets, fire proof doors and five air-conditioners are eligible to the benefit of exemption in terms of Notification 123/81 as they are excisable capital goods used in connection with manufacture of the final product "filament yarn" in the appellants unit which is a 100% EOU. However, we hold that the benefit would not be available to Item No. 4 i.e. Syntex tanks for water since the appellants have not explained how water stored in these tanks is required for the manufacture of filament yarn and further, since water stored in the tanks is a....