2003 (10) TMI 478

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....Aurangabad who has confirmed the following demands and imposed penalties as under :- (1)        Central Excise duty of Rs. 21,54,92,842/- on a quantity of 3,35,632.418 kms of optical fibres manufactured in the 100% EOU unit of the applicants (this unit was set up in March, 2001) cleared clandestinely to their DTA unit (set up in 1993 and in 1995) and merged in a single DTA unit (in January, 1998) for further clearance to domestic market. (2)        Central excise duty of Rs. 51,69,39,050/- on a quantity of 6,35,625.7 kms of optical fibres manufactured in the 100% EOU unit and clandestinely cleared to the domestic market under the invoices to the DTA to show as if th....

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....Commercial) and (11)     Penalty of Rs. 5 lakhs and Rs. One lakh on Pramod Unde, CSO. Penalties on the individuals have been imposed under Rule 26 of the Central Excise Rules, 2002 and Section 112(b) of the Customs Act, respectively. 2. The demands of Central Excise duty have been confirmed in terms of the proviso to Section 3(1) of the Central Excise Act, 1944, which provides that the Central Excise duty leviable on goods manufactured by 100% EOU and brought to any other place of India shall be the amount equal to the aggregate of the duties of Customs which would be leviable under the Customs Act, 1962 or any other law for the time being in force. Since the optical fibres fell for classification under Chapte....

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....for debonding of their 100% EOU in October, 2001 which was ultimately granted in July, 2003 and therefore, they are to be treated as other than 100% EOU throughout this period is also contentious, particularly in view of the fact that the debonding order itself states that the order will have immediate effect which would prima facie indicate that it is prospective and not retrospective in operation. The ld. Counsel for the Revenue also submits that as per Appendix 14-I-L of the Exim Policy prescribing guidelines for exit of EOU unit, the unit will continue to be treated as EOU till the date of final exit order. However, we note that out of the total duty demand of approximately Rs. 79 crores, waiver of pre-deposit of which is sought by the ....