2011 (7) TMI 287

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....pondent became a 100% EOU in September 2006. Prior to that it was a DTA unit. On scrutiny of returns filed by the respondent from September 2006 to March 2007 it was noticed that respondent had paid central excise duty as applicable in respect of their clearances in DTA. Proceedings were initiated taking a view that duty should have been paid as applicable to 100% EOU i.e. 50% of customs duty appl....

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.... dated 29.05.08 had reported that correlation regarding the duty suffered on inputs at the time when the unit was DTA and the same inputs utilized in the finished goods cleared after the conversion of DTA into EOU cannot be made. Based on this report of the Jurisdictional Range Officer which said that there was no correlation between the duty paid input and the finished goods cleared by the respon....

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.... manufactured by the EOU were manufactured before they attained the status of EOU and out of duty paid goods or not. Department is not contesting the fact that respondent could have cleared the goods to DTA if they were manufactured out of duty paid inputs before they attained the 100% EOU status. The grievance is only that while the original adjudicating authority had got a verification report fr....

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....nputs before the unit attained 100% EOU status. Since the Range Officer s report was also not made available to the respondent and they did not get an opportunity to produce supporting evidence and also contest the Range Officer s report, even though appeal is required to be allowed in view of the error in fact finding by the learned Commissioner (Appeals), the same has to be remanded to the origi....