TaxTMI 
TaxTMI 
2015 (2) TMI 125
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....2,83,40,944/- in respect of the products arising on account of short payment of duty and denial of benefit under Notification No. 23/2003-C.E., dated 31-3-2003 as amended should not be demanded; an amount of Rs. 31,38,158/- paid by them under protest vide debit in their Cenvat account vide Sl. No. 792/33, dated 11-1-2013 should not be vacated and the same should not be appropriated towards the demand of Rs. 2,83,40,944/- and penalty under Rule 25 of the Central Excise Rules 2002 should not be imposed on them. 2. The issue relating to this show cause notice and the corresponding OIO has been dealt with in appeal No. E/2015/2014. A similar show cause notice was issued for the earlier period on the same issue in respect of the 4 medicines mentioned earlier and Cartiwin, Trimester, Oxaliplatin Inj. And Cyclosporine capsules. In these cases also, it was proposed to deny the benefit of Notification No. 23/2003 and differential duty of Rs. 2,91,22,206/- was proposed to be demanded and amount paid by them of more than Rs. 45 lakhs was to be adjusted. 3. Both the show cause notices have been adjudicated and impugned orders have been passed whereby the demands for differentia....
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....ommissioner of Customs, Bangalore had issued a Public Notice No. 32/2010, dated 26-5-2010 and all the units were shifted to Central Excise jurisdiction and the corresponding trade notice was issued by the Commissioner of Central Excise. 5. It was submitted that both the Commissioners grossly erred in issuing the public notice and the trade notice and these notices have been issued based on an erroneous understanding of the Circular dated 18-5-2010. Therefore, it was submitted that the Commissioner of Central Excise had no jurisdiction to adjudicate the matter. 6. The letter which has been relied upon to make this submission is reproduced as under :- Vide Circular No. 31/2003-Customs, dated 7-4-2003, the administrative control over EOUs, (including EHTP and STP) in the port cities, falling within the territorial jurisdiction of Commissioner of Customs, is with the concerned Commissioners of Customs. At other places, administrative control is with the jurisdictional Commissioner of Central Excise. The only exception is Bangalore Customs. 2. In view of implementation of Automation of Central Excise and Service Tax (ACES) the issue of administrative control o....
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....uld be considered as raw material and not a consumable and he has dealt with only whether it can be considered as imported goods or not. In any case, since the appellants have paid duty under protest, we consider that this issue can be left for decision at the time of final hearing. The next submission that has been rejected is the submission that concessional rate of duty under Sl. No. 2 of Notification No. 23/2003, dated 31-3-2003 is not available to the 4 medicines specified in the first show cause notice. According to Sl. No. 2 of the notification, a 100% EOU can pay 50% of the duty leviable under Section 3 of Central Excise Act to goods cleared to DTA. As per the provisions of Exim Policy, an EOU can sell a part of production into DTA with the permission of Development Commissioner. 9. Insofar as the issue of denial of the benefit of concession availed under Notification No. 23/2003-C.E., dated 31-3-2003 stated supra is concerned, the appellant submitted that the notice proceeds to rely on the condition (ii) stipulated for availing the benefit of Sl. No. 2 of the Notification ibid, which stipulates that if the goods are cleared into DTA in accordance with sub-paragraph....
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....products similar to goods which are exported or expected to be exported from units. However, units which are manufacturing and exporting more than one product can sell any of these products into DTA, up to 90% of FOB value of export of the specific products, subject to the condition that total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit, as stipulated above. No DTA sale at concessional duty shall be permissible in respect of motor cars, alcoholic liquors, books, tea (except instant tea), pepper & pepper products, marble and such other items as may be notified from time to time. Such DTA sale shall also not be permissible to units engaged in activities of packaging/labelling/segregation/refrigeration/compacting/micronisation/ pulverization/granulation/conversion of monohydrate form of chemical to anhydrous form or vice-versa. Sales made to a unit in SEZ shall also be taken into account for purpose of arriving at FOB value of export by EOU provided payment for such sales are made from Foreign Exchange Account of SEZ unit. Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including bu....