2014 (3) TMI 789

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....on yarn, spun yarn of synthetic fibres and spun yarn of blended fibres for export. The goods being manufactured fall under Chapter 52 and 55 of the Central Excise Tariff and would attract excise duty when cleared into DTA. Shri V.P. Yadav is the General Manager (Tech.) of the Appellant Company. For manufacture of synthetic spun yarns and polyester cotton blended yarn, polyester staple fibre (PSF) was being procured by the Appellant Company from M/s. Indo Rama Synthetics (I) Ltd. free of duty. Scrutiny of invoices of M/s. Indo Rama Synthetics revealed that the PSF was being cleared by them to the Appellant Company as deemed export by availing the benefit of deemed exports in terms of para 8.3 of the EXIM Policy. 1.2 The dispute in th....

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.... on Shri Yadav, General Manager (Tech.) of the Appellant Company under Rule 26 of the Central Excise Rules, 2002. 1.3 The show cause notice was adjudicated by the Commissioner vide order-in-original dated 29-1-2010 by which- (a)     the duty demand of Rs. 56,63,820/- was confirmed against the Appellant Company along with interest; (b)     penalty of equal amount was imposed on the Appellant Company under Section 11AC, and (c)     penalty of Rs. 1,00,000/- was imposed on Shri V.P. Yadav under Rule 26 of Central Excise Rules, 2002. 1.4 Against the above order, this appeal along with stay application have been filed. 2. Heard both the sides in respect ....

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....rder and emphasized that when in terms of Explanation II(ii) to the Notification No. 23/2003-C.E., the goods received by a 100% EOU, in respect of which deemed exports benefit under para 8.3(a) & 8.3(b) of the EXIM Policy have been availed by the suppliers, are to be treated as "imported goods" for the purpose of the notification, the same would have to be treated as not manufactured or produced in India. He, therefore, pleaded that in respect of DTA clearances of spun yarn by the Appellant Company, the rate of duty applicable would be the rate prescribed in S. No. 2 of the Table to the notification, not the rate prescribed is of S. No. 3 of the Table. He, therefore, pleaded that this is not a case for waiver from the requirement of pre-dep....