TaxTMI 
TaxTMI 
2016 (6) TMI 315
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....Exchangers such as Evaporators, Condensers and parts thereof. The appellant claimed exemption under Notification No. 23/2003-CE dated 31.3.2003. This notification provides exemption from Special Additional Duty (SAD) only if the goods are not exempted by the State Government from Sales Tax. The appellant availed benefit of this notification on the stock transfer made to their own DTA unit. It is the case of the Revenue that the appellant should have paid the SAD as applicable on the goods cleared on stock transfer to their own unit. Appellant contested the show-cause notice on merits. The adjudicating authority did not agree with the view and confirmed the demand raised along with interest and imposed penalty. On an appeal, the first appell....
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....ppellant, who is a 100% EOU for the clearances effected to their own unit in DTA on stock transfer basis. 6.1 Undisputedly, the goods cleared by the appellant to their own unit is on stock transfer basis, the same goods cleared to any other DTA unit for the sale is on payment of the appropriate Sales Tax on the clearances made; there is no exemption granted by the Sales Tax authorities on the said goods. 6.2 On this factual matrix, we find that the learned Counsel is correct in bringing to our notice that an identical issue has been decided by this Tribunal in the case of Micro Inks (supra); the facts in Micro Inks are identical. The Bench after considering the submissions made by both sides has elaborately discussed the issue which is in....
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....ansfer made from EOU to their sister concern needs to be discharged. 10. We are unable to accept the contentions raised by the Ld. Departmental Representative and the findings recorded by the adjudicating authority for more than one reason. Firstly, it is the fact that the inter unit clearance from EOU to DTA are not exempted from payment of sales tax by the state government by any notification and revenue unable to bring on record any notifications issued by the state government or otherwise to indicate that inter unit transfers from EOU to DTA are exempted. It is an admitted fact that whenever there is an inter unit transfer, it is not sales transactions and hence the sales tax/CST/VAT may not get attracted does not mean ipso facto, it ....
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....h clearances, cannot be construed as an exemption granted by the state government. We find that for the purpose of taking benefit of Notification 23/2003/CE, as amended, the one and only condition specified in respect of the goods being cleared into DTA, is if the said goods are exempted by the state government from payment of sales tax/VAT; in the present case there is no such notification or order issued by the state government exempting impugned goods from the payment of sales tax/VAT. it is to be held that plain reading of notification No. 23/2003-CE as amended is applicable "QUA-GOODS" and exemption is across the Board and is applicable to all such goods which are not exempted by the state government by issue of notification or an orde....