TaxTMI 
TaxTMI 
2005 (10) TMI 539
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....have not availed any tax exemption or Customs Duty exemption and for the past 7 years they have not imported any raw material. They have achieved value additions in terms of net foreign exchange of nearly 100%. As a BIFR company, they were closed for a long period, re-commencing operation only in August 1999. 1.2 The Development Commissioner, SEEPZ-SEZ, Ministry of Commerce, Government of India, Andheri, Mumbai, is the sponsoring authority for the Appellants' EOU. They after completing each quarter based on their export performance, duly certified, made application to the said Development Commissioner for grant of DTA sale permission. After receipt of such permissions, they started selling goods to various customers, including Tata ....
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....sessable value of dispatches made to TISCO and also referred to agreement entered into. The contract with TISCO was amended from 1-1-2001 to 31-12-2001, revised assessable values due to reduction in conversion fees paid by TISCO was intimated to the Department on 19-7-2001, indicating clearly that the contract was a conversion contract. On their request, the copy of the agreement with TISCO was sent vide a letter dated 3-9-2001 acknowledged by the Department and Central Excise Audit team visited the assessee's works in mid September 2001 and on finding that the dispatches lo TISCO were not permitted under DTA sale as the same amounted to job work/sub-contracting. The CIU Officers thereafter came to the works and ordered the detention of 1,0....
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.... to 11/2001 1110.000 2,28,47,130/- 79,50,801/- 4. 16-12-2002 V(72)3-27/02/d/ 5304 12/2001 524.000 1,06,68,417/- 37,12,609/-, 5. 4-2-2003 V(72)3-26/02/364 01/2002 to 02/2002 986.000 2,02,94,838/- 70,62,604/- 6. 25-2-2003 V(72)3-53/02/D/ 578 03/2002 1190.000 2,43,65,445/- 84,79,172/- 7. 13-3-2003 V(72)3-54/02/D/ 740 04/2002 to 06/2002 695.000 1,43,06,320/- 49,78,595/- Total 15792.850 32,31,30,000/- 11,56,08,497/- The Notices were demanding duty on the same basis and had made the same proposals. The Commissioner, Central Excise, Nagpur, vide an order dated 24-6-2003 disposed off the said 7 show cause notices....
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.... When a new product, commercially different from the raw material supplied, would emerge, in that case, upon the process undertaken, would amount to manufacture under the Central Excise Act, 1944 and it would no longer be job work, which was envisaged as an exempted process under the Notification being considered by the Apex Court in the case of Prestige Engineering (I) Ltd. Subsequent to this decision, the Constitution Bench of the Apex Court, in the case of Ujagar Prints, 1988 (38) E.L.T. 535 (S.C.), have held '30. In the case of processing-houses, they become liable to pay excise duty not because they are the owners of the goods but because they cause the 'manufacture' of the goods' &n....
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.... c. Since the finding of the Commissioner, in para 17(ii), that the transactions between the EOU and TISCO was only return of the goods, after job work, in terms of the agreement and there was no sale of Silicon Manganese at all cannot be upheld since it is the Department's case as seen from the SCN that the value taken in the invoices are taken to be the values for assessment of duty in this case. If there was no sale, the invoice values could not be the assessable value as accepted by the Department in the SCNs. Since invoice values are accepted, the sale cannot be doubted. In this view of the matter, the clearances under para 9.9 (a) of EXIM policy for DTA sales cannot be questioned. d. &nbs....
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....tices proceed to deny the clearances effected under the first proviso to Section 3(1) of the Central Excise Act, 1944, i.e 'allowed to be sold in India' and proceeds to levy the duty under main Section 3(1) of the Act. The Larger Bench in the case of Himalaya International & Others [2003 (56) RLT 842] vide para 7 thereof has held; in the light of the above, we hold that the rate as per the proviso to Section 3(1) would be applicable for accessing all the excisable goods, which were cleared by 100% EOU to DTA whether in terms of permission granted or in excess and the instructions issued vide Circular No. 618/9/2002-CX, dated 13-2-2002 has not been upheld as the submission made by the ld. Advocate, which merit the consideration to reject the....