TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 1074
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.... a 100% EOU. Respondent was procuring duty free raw materials from other 100% EOUs by following CT-3 procedure. As per Para 6.8 of EXIM Policy 2002-2007, respondent was permitted to sell in DTA 'Reject' on payment of applicable rates of duty. Revenue observed from the returns of the respondent filed for April 2002 that 120.946 Mtrs of texturised yarn rejects were cleared in DTA without obtaining permission from the Development Commissioner. The declared value of the reject yarn was Rs. 21,77,022/- on which Respondent paid duty in terms of Notification No.8/97-CE, dt.1.3.97. A show cause notice dt.8.5.2003 was issued to the respondent demanding duty of Rs. 39,06,725/- which was confirmed by the adjudicating authority under OIO No.87/ADJ/ADC-....
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....rity as per Order No.S-105/WZB/05/C-III, dt.24.01.2005 in Appeal No.E/2790/2004. 3. On the other hand as per the remand directions of Commissioner (Appeals) vide order dt.20.7.2004 jurisdictional Deputy Commissioner vide letter dt.25.05.2005 requantified the duty at Rs. 16,46,794/-, after making an adjustment of Rs. 8,01,144/- duty already paid by the respondent. Against this re-quantification respondent filed an Appeal before Commissioner (Appeals) who vide OIA No.VP/417-418/SRT-I/2005, dt.22.08.2005 held that duty quantification has been wrongly done by the lower authority by taking the value of raw materials (which was more) used for the manufacture of finished goods cleared as rejects. It was held that duty of Rs. 8,01,144/- already qu....
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....d permission from the Development Commissioner and without intimation to the Jurisdictional Assistant Commissioner by paying improper duty instead of paying duty of Excise equivalent to Customs duties leviable under Customs Tariff Act, 1975 on the like goods when imported into India. The show cause notice further refers to the details of duty given in Annexure-A to the show cause notice. That differential duty of Rs. 39,06,725/- has been arrived at by applying the rate as applicable to imported goods as provided in Proviso to Section 3(1) of the Central Excise Act, 1944 on the assessable value equal to the value of the raw material used in manufacture of the Export goods/rejected texturised yarn. That this has been possibly done as the valu....
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....hat earlier Commissioner (Appeals) has ordered only for calculation of duty and no order has been passed regarding value of the goods or that has been demanded on the raw materials and on the finished goods, therefore assuming that duty demanded in the show cause notice was that relating to raw materials, even then no order has been passed by the Commissioner (Appeals) in this regards earlier. That the appeal against the earlier order of Commissioner (Appeals) filed by the Department is still pending with CESTAT. That earlier appeal filed by the Department on 26.10.2004 against OIA No.RKS/103/SRT/2004 dt.20.7.2004, may be heard by CESTAT simultaneously along with the present appeal. 5. Shri G.P. Thomas (AR) appearing on behalf of the Reven....
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....there is no justification in imposing penalty. 7. Heard ld.A.R. and perused the case records including the written submissions made by the respondent. The issue involved in appeal No.E/3176/2004-DB is with respect to eligibility of Notification No.8/97-CE and whether the goods received from other 100% EOU shall be treated as imports. It has been categorically held by Commissioner (Appeals) in OIA dt.20.7.2004 that 'reject' goods cleared in DTA have been procured by the respondent from indigenous sources. Simply by procuring such indigenously manufactured raw materials from another 100% EOU will not make them imported goods as suggested by Revenue. Relevant provisions of the EXIM Policy, considering transfer of goods from one 100% EOU to an....