2006 (6) TMI 310

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....ce of final product in domestic tariff area on payment of appropriate duty as applicable from time to time at the rate for the time being in force as per the norms of Export Import Policy. As a 100% EOU they are entitled to DTA sales to the extent of 50% of the FOB value of exports including 5% rejects and 5% waste as per para 9.9 and 9.20 of Exim policy 1997-2002. The appellants cleared finished grey fabrics, rejects and waste during the period July 2001 to January 2002 in DTA under Notification Nos. 2/95-C.E., dated 4-1-1995 and 13/98-C.E., dated 2-6-1998. It was noticed by the department that while calculating the FOB value they have taken into consideration the value of deemed exports also and as per the interpretation of the department....

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.... (179) E.L.T. A100. Since the decision in Himalaya case has been set aside by the Supreme Court the same will no long hold good as Larger Bench decision got merged with the Supreme Court decision. It was accordingly submitted that they were rightly entitled to the benefit of Notification Nos. 2/95 and 3/98. However, if these notifications are held as inapplicable then they are entitled to full exemption under Notification No. 125/84, dtd. 26-5-1984 which exempts the goods manufactured by 100% EOU. Though the exemption is not available in respect of goods allowed to be sold in India but since the department is taking a stand that the goods are not allowed to be sold in India, the benefit of Notification No. 125/84 cannot be denied. It was fu....