2016 (3) TMI 519

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....penalty of Rs. 50,000/- on Shri. D.I. Desarda, Vice President (Excise) of M/s. Jain Irrigation Systems Ltd. and penalty of Rs. 10,00,000/- on M/s. GCL Equipments & Machines (P) Ltd. Thane. 2. The fact of the case is that the appellant is 100% Export Oriented Unit situated at Bambhori, Dist: Jalgaon and engaged in manufacture of extruded, moulded and fabricated plastic goods moulded products, foam sheets and other applications, valves, fittings, pipes etc. moulded fabricated and assembled plastic sheets, metallised acrylic, mirror sheets and hollow profiles, sheets, polycarbonate domes convex/concave, mirror etc falling under Chapter 39/84 of the First Schedule to the Central Excise Tariff Act, 1985. Appellant supplied goods without payment....

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....lant being 100% EOU can clear the goods only for export or deemed export. In the present case the buyer i.e. M/s. GCL Equipments and Machines Pvt. Ltd. is not an exporter therefore appellant has wrongly cleared the goods under Notification No. 43/2001-C.E. (NT) dated 26/6/2001. Aggrieved by the impugned order the appellant filed these appeals. 3. Shri. T. Chandran, Nair, Ld. Counsel for the Appellant submits that as regard the restriction provided under Section 5A of Central Excise Act for removal of goods under exemption notification issued under Section 5A, the appellant have not availed any exemption notification under Section 5A. The appellant have cleared the goods under bond in terms of Notification No. 43/2001-CE(NT) dated 26/6/2001....

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....with the Ld. Counsel that no restriction or prohibition is provided in the law for application of such provisions to 100% EOU. Under the above said provisions clearances are allowed without payment of duty only for the reason that the buyer undertakes to use the said duty free goods for manufacture of goods which would be exported. The contention of the show cause notice, objections of the Adjudicating authority that the restrictions provided under Section 5A, we are of the view that the appellant have not cleared the goods under any notification which was issued under Section 5A. The Notification No. 43/2001-CE (NT) and the provisions of Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods) Rules....

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....rtaking had exported out of India 100 per cent of articles manufactured by it. The only argument which is sought to be raised is that the unit at Bhimli (Visakhapatnam) which was given the status of E.O.U. has not fulfilled this obligation and in fact, goods were sent to Chennai unit and it is from Chennai unit that the export was effected. We hardly see it to be a ground to deny the exemption. As mentioned above, it is the respondent, namely, M/s. Alsa Marine & Harvests Ltd., which is an E.O.U. and it is this undertaking which has fulfilled its obligation under the aforesaid notification. Whether it is done from Bhimli (Visakhapatnam) or Chennai unit, would be totally irrelevant and immaterial. We, thus, do not find any error in the order ....