TaxTMI 
TaxTMI 
2010 (7) TMI 1119
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....ssion dated 24-8-1999 to effect DTA sales of goods valued at ₹ 59,17,991/- against deemed exports valued at ₹ 1,18,35,983/- for the quarter April, 1999 to June, 1999. DTA sales were effected by assessee during December, 1999 to February, 2000 consequent to their permission and duly discharged as follows. 1. Cotton Grey Fabrics - 5% AV - Notification No. 20/98, dated 18-7-1998. 2. Cotton Grey Fabrics - 12% AV - Notification No. 20/98, dated 18-7-1998. 3. Polyester Grey Fabrics - 30% AV - Notification No. 8/97-C.E., dated 1-3-1997. 4. Polyester Grey Fabrics - 35% AV - Notification No. 2/95-C.E., dated 4-1-1995 2.2 Another show cause notice dated 7-8-2000 bearing the same file number was issued on identical grounds for wh....
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....r alleged that the party had contravened provisions of Rule 9(1) read with Rule 100E and Section 11A of Central Excise Act, 1944 with an intent to evade payment of duty for the clearances effected over and above permissible DTA limits. Penalties were also sought to be imposed under Rules 9(2) and 209(1)(a) & 209(1)(d) of Central Excise Rules, 1944. 3. The assessees in the written reply contested the show cause notice on various grounds. The adjudicating authority, after hearing the assessee and carefully perusing the records, came to the conclusion that the proceedings initiated by the show cause notice need not to be proceeded and dropped the proceedings. Aggrieved by such an order, Revenue is in appeal before us. 4. The conten....
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....the deemed export is not to be excluded while determining FOB value of the export in DTA sales. It is his submission that this decision in Amitex Silk Mills Pvt. Ltd. case has been upheld by the Hon'ble Supreme Court by dismissing the Civil appeal as reported in 2010 (254) E.L.T. A98. 6. We have considered the submissions made by both sides and perused the records. 7. The issue involved in this case is whether the decision of the ld. Commissioner as an adjudicating authority to drop the proceedings wherein the assessee had included the value of deemed export in the FOB value for clearing to DTA sales to the tune of 50% of the FOB value is correct or not. The findings of the adjudicating authority are as under : - "10. Hear....
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....ad v. Sanghi Spinners (I) Ltd.; reported as 2007 (209) E.L.T. 43 (T) holds that "permission granted to dispose of goods manufactured by them in DTA in terms of norms stipulated, clearances made in terms of permission granted by Development Commissioner - Customs Department cannot take view contrary to that of Development Commissioner in interpreting Exim Policy". 11. It is seen that the goods have already been cleared on payment of duty. CESTAT in a catena of cases has held that even if goods are cleared by 100% Development Commissioner, still rate of duty under sub-section (1) of Section 3 equal to duty of excise is leviable and not the customs rate leviable under proviso to sub-section (1) of Section 3 of Central Excise Act, 1944. I....