TaxTMI 
TaxTMI 
2004 (10) TMI 451
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....eard Shri B.L. Narasimhan, learned Advocate for the Appellants and Smt. Krishna A. Mishra, learned SDR for the Revenue. The learned Advocate submitted that the Appellants Textile division was functioning as a Domestic Tariff Area unit (DTA unit); that on 29-5-2001 they applied for conversion of the DTA unit into 100% Export Oriented Undertaking; that the letter of permission was issued by the Development Commissioner on 25-6-2001; that they were granted warehousing licence under Section 58 of the Customs Act on 27-7-2001; that they executed B-17 Bond which was accepted by the authorities on 13-8-2001; that the Appellants w.e.f. 1-9-2001 started functioning as an 100% E.O.U. and availed of the benefit as applicable to 100% E.O.U.; that for t....
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....old in India because they had not obtained any permission from the Development Commissioner. He, further, mentioned that the Appellants sought alternatively the benefit of Notification No. 125/84-C.E., dated 26-5-84 which exempts all excisable goods, produced or manufactured in a 100% E.O.U.; that notification further provides that the exemption shall not apply to the goods, if allowed to be sold in India; that the Commissioner has also disallowed the benefit of Notification No. 125/84 on the ground that the goods are to be considered as allowed to be sold in India because otherwise it will lead to absurd consequences; that for this purpose the Commissioner has relied upon the decision of the Larger Bench of the Tribunal in the case of Hima....
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.... provides partial exemption subject to the condition that the finished products have been manufactured wholly from the indigenous raw material and the unit has been allowed to sell the goods in India. It has not been disputed before us by the Revenue that the finished goods manufactured by the Appellants have not been manufactured wholly from the indigenous raw material. The only condition to be fulfilled by the Appellants is that the goods have been allowed to be sold in India. The Commissioner has held that the benefit of Notification No. 8/97 is not available as they have not been allowed to sell the goods in India. We also observe that Notification No. 125/84 also exempts all excisable goods manufactured in a 100% E.O.U. provided the go....