2010 (2) TMI 1004

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....g the requisite warehouse licence. Under the EOU scheme, they had to discharge export obligation in relation to the imported goods. They had 5 years to achieve this in relation to the capital goods, from the date of installation. The capital goods imported by them were worth over Rs. 120 crores and raw materials worth over Rs. 5 crores. These imports were made in 1997-98 and the provisions of the EXIM Policy 1997-2002 were applicable. During 1999-2001, the EOU could export their finished goods worth Rs. 7.45 crores including deemed exports. They could not make any further exports. The unit was shut down in September, 2000. Later on, on the ground of breach of conditions of Notification No. 53/97, whereunder the goods were imported duty-free....

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....hysical and deemed) worth Rs. 7.45 crores were made by the assessee out of raw material worth Rs. 5.84 crores. It has been argued that, as the department has not alleged that any raw material was diverted and as it is not their case that any unutilised raw material was found in the factory, the demand of duty on the raw material is not sustainable. It has been claimed that the entire raw material was utilised in the manufacture of the finished goods and such goods were exported or cleared to DTA. We find from the records that, in their reply to show cause notice, the EOU contended that there was no stock of raw material left unutilised. The impugned order does not seem to contain any rebuttal of this claim of the EOU. In this scenario, we a....