TaxTMI 
TaxTMI 
2012 (11) TMI 686
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....They also entered into job work for their sister unit for manufacture of forged flanges of Carbon Steel/Alloy Steel/Stainless Steel. The said forged flanges were being manufactured by the appellants on job work basis out of the raw material supplied by their sister concern. On receipt of the said goods, the sister concern was utilizing the same for the manufacture of final product which was being cleared by them on payment of duty. 3. Revenue entertained a view that being a 100% EOU, the appellants could not have manufactured the goods under the job work. In as much as there was violation, the duty stands raised against them and confirmed by the impugned order of the Commissioner. 4. Ld. Advocate appearing for the appellants sub....
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....attention to the Tribunal's decision in the case of Terry Fab (India) Ltd. reported in - 2007 (213) E.L.T. 236 (Tri.-Del.). It stands held that the job work done by EOU for sales in DTA was the procedural breach of the Exim Policy condition. He also draws our attention to the Hon'ble Supreme Court's decision in the case of Hindustan Granites reported in 2007 (211) E.L.T. 3 (S.C.) in support of his contention that 100% EOU are not entitled to undertake job work. As regards the limitation, he draws our attention to the findings of the Commissioner as contained in para 6.19 wherein he has observed that the benefit of Notification No. 214/86 was not available to the 100% EOU which are governed by FTP Policy. The adjudicating authority has accor....
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....erification certificate in respect of each and every document filed by the appellant and relied upon by them. We also note that there is no reason advanced by the Revenue to doubt the correctness of the said documents so produced by the appellants. We also further note that a reference to the documents was made by the appellant in their reply to SCN, which does not stand discussed by the Commissioner. As such, the said documents cannot be discarded merely on the basis of fact that there is no verification certificate of the same in the absence of even an iota of doubt as regard their correctness. 8. We now proceed to decide the stay petition. The appellants have only raised the issue of limitation and Revenue neutrality. We note that ....
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.... clear by the letter No. C. No. 20-CE/CH/WL/100%EOU/Misc./R-V/D-IV/129/08/1210, dated 15-2-2008, extended period of limitation cannot be invoked. Further, the Noticee Company never had intention to evade the duty, which is clear from the following records maintained by the Noticee Company : (1) Reversal of CENVAT Credit in Monthly Return. (2) Reversal of CENVAT Credit in CENVAT Register. (3) Preparation of record of movement of goods in incoming & outgoing registers. (4) Preparation of Job Work Register. (5) Ledger account of M/s. Echjay Industries Pvt.Ltd., Rajkot, Gujarat. (6) Raising of in....
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.... of subcontracting as given in para 6.14 (B) of Foreign Trade Policy 2004-09, 2009-14 & Board's Circular No. 67/98-Cus., dated. 14-9-1998 & 74/99-Cus., dated 5-11-1999 along with Rule 17 read with Rule 4, 6, 8 & 11 of Central Excise Rules, 2002. They went beyond the scope of Foreign Trade Policy in undertaking such job work knowingly and willfully with intent to evade payment of duty. Therefore, for demand and recovery of duty so evaded, the extended period of limitation appears to be invokable under proviso to Section 11A(1) of CEA, 1944 against the said M/s. Chaudhry Hammers (P) Ltd. (100% EOU). CHWL, thus liable to pay duty amount to Rs. 3,35,97,144/- (Rupees Three crores thirty five lakhs ninety seven thousands one hundred forty four on....