TaxTMI 
TaxTMI 
2008 (1) TMI 191
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....of various types of furniture without payment of Central Excise duty and without following any Central Excise procedure, the officers of the Directorate General of Central Excise Intelligence conducted the very detailed investigation and based on the investigation prima facie, a case was established against them for evasion of duty. Show Cause Notices were issued to them alleging the contraventions of various provisions of the Central Excise Act. In all four Show Cause Notices were issued answerable to Commissioner Bangalore- II, Commissioner Bangalore - I, Commissioner Chennai - II and Additional Commissioner Trivendrum. However, based on Board's order, all the Show Cause Notices were adjudicated by the Commissioner of Central Excise Banga....
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....cise dt. 26.05.1984 to the goods manufactured by the assessee in the premises of EOUs. This is because the said Notification exempts the excisable goods produced or manufactured in a 100% EOU. In other words, the exemption under the said Notification is available only to the goods manufactured by a 100% Export Oriented Unit in its premises i.e. the goods should be manufactured in the premises of the EOU and also by the EOU. It may be noted here that EOU is a bonded warehouse licenced under Section 58 of the Customs Act 1962 and the EOU is permitted to carry out manufacturing operations in the said premises in terms of Section 65 of the Customs Act 1962. Therefore a third party carrying out manufacturing activities in the said premises is no....
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....5/84 dated 26.05.1984 which does not provide for any safeguard to the Revenue in case of default by the EOU's. As per the EXIM Policy the EOU is permitted to manufacture and export goods specified in the Letter of Permission (LOP)/Letter of Intent (LOI). Thus the benefit of the Notification 125/84 dated 26.05.1984 can be extended to such excisable goods specified in the LOI/LOP. The licence under Section 58 and the permission to carry out manufacturing operations as per Section 65 of the Cusotms Act is also for the development and export of software. Thus the furniture/work stations being supplied by the M/s. RSA are in the nature of capital goods which have been installed in the EOU's and are not meant for export. Therefore extending the ....
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....EOU's and are not meant for consumption in the manufacture of the export product. In the Show Cause Notice, there is a proposal for impositon of penalties under Section 11 AC of CEA, 1944 and under rules 52A, 173Q, 210 of CER 1944 and also under Rule 209A of the CER, 1944. Whereas, there is no finding of the Commissioner with regard to either imposition or non-imposition of penalties proposed in the Show Cause Notice. Therefore other portion of the Order-in-Original is also silent and does not indicate any non-imposition of penalties, which are proposed in the Show Cause Notice. Therefore, it is fit case for remand." 3. The respondents also have filed the cross objection and they have raised the several contentions including the time bar.....
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...., but the actual maker is the manufacturer although not the owner of the material, and the Respondents submit that the Notification 125/84-Central Excise is a "premises bases" Notification, applicable to all goods manufactured in an EOU. It should not be given a narrow interpretation as made out by the revenue in their appeal, and should not be whittled down in law. The Respondents has relied on several case laws in which the manner of interpreting statutory notifications has been expatiated upon. The Respondents submit that ground no. 24 of the Revenue is grossly misconceived in saying that the notification 125/84-Central Excise exempts the excisable goods produced or manufactured in a 100% EOU and by a 100% EOU. This is uncal....
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....ured in a hundred per cent export-oriented undertaking from the whole of the duty of excise leviable thereon under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944): Provided that the exemption contained in this notification shall not apply to such goods if allowed to be sold in India 5. A careful reading of the Notification reveals that the government exempt all excisable goods produced or manufactured in 100% EOU from the whole of duty of excise leviable thereon under Section 3 of the Central Excise and Salt Act. A plain reading of the notification reveals that the notification does not restrict the benefit of exemption to goods manufactured by 100% EOU as contended by the Revenue. If so, the Notification itself should hav....