2011 (12) TMI 451

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....ant is a 100% EOU and is engaged in the manufacture of Mango, Guava, Tomato etc. The applicant applied for the DTA sale and the applicant was accordingly permitted by the Development Commissioner. The applicant claimed the benefit of concessional Notification No. 13/98, dated 2-6-1998. The Department denied the benefit to the applicant on the ground that they have not fulfilled the obligation of NFE. Aggrieved by the same, they filed appeal before this Tribunal. This Tribunal remanded the case for deciding afresh while taking into consideration the distinction between the raw material and packaging material. The ld. Commissioner upheld the contention of the appellant that the product is fully made up of indigenous raw materials, and allowed....

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....ot achieved, the department should have taken up the matter with Development Commissioner who had granted the permission and therefore the benefit of the Notification should not be denied to them. In support of their contention they have placed reliance on : (i)     Vanasthali Textiles Ind. Ltd. v. CCE, Jaipur - 2007 (218) E.L.T. 3 (S.C.) (ii)   Asian Peroxcids Ltd. v. CCE, Guntur - 2008 (228) E.L.T. 5 (S.C.) (iii)   Ginni International Ltd. v. CCE, Jaipur - 2002 (139) E.L.T. 172 (Tri.-Del.) (iv)   Sabhnam Synthetics Ltd. v. CCE Surat - 2003 (152) E.L.T. 123 (Tri.-Mum.) (v)     Kaatyayini Exports v. CCE, Mum. - 2003 (156) E.L.T. 497 (Tri.-Mum.). 5. ....

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....emsp;Such finished products, if manufactured and cleared by a unit other than a hundred per cent export-oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to nil rate of duty; and (b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997-31 March, 2002. 7. Whether the finished product rejects or wastes and scraps are wholly manufactured from the raw materials produced and manufactured in India, the ld. Commissioner has already decided this issue in favour of the as....

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....e a fiscal penalty for Rs. 5,000.00 (Rupees five thousand only) on the unit/Noticee Firm. No further restriction on the operations of the unit will be imposed." It is settled principal of law that notification granting exemption has to be strictly construed. The appellant could not fulfil the condition of the notification. Para 9.9 (b) of the EXIM Policy as they did not achieve (+) regarding NFE which is clear from the Development Commissioner's aforesaid order. So far as the case laws cited by the appellant in the case of Vanasthali Textiles and Asian Peroxides Ltd. (supra) is concerned, the issue involved in the case was raw materials v. Consumable which is not the issue in the present case. Similarly the decision cited in the case of ....