2016 (11) TMI 38

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....gerated trucks under the Notification No.13/1981, without payment of customs duty. The appellant applied for de-bonding of EOU on 13.5.1997 and proposed to convert their unit to a unit under EPCG scheme under Customs Notification No.29/1997-Cus. The de-bonding of the unit was done on 21.6.1999. At the time of de-bonding, the customs authorities raised demands towards customs and central excise duties payable on the capital and other goods in terms of the Customs Notification No.13/81. However, the liability of duty on the five refrigerated trucks imported earlier into the EOU was not decided. With a view to allow migration of the appellant s EOU from 100% EOU scheme to EPCG scheme, the appellant executed a bond with bank guarantee as securi....

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....r Customs Notification No.13/81. The proposal in the show-cause notice is limited to enforcement of the bond. (iii) The departmental authorities have travelled beyond the scope of show-cause notice in deciding the issue of eligibility of Notification No.13/81. 3. Heard both Shri Raghavendra B. Hajer, learned advocate for the appellant and Shri J. Harish, learned AR for the Revenue. 4. The learned advocate reiterated his grounds and prayed for setting aside the impugned order. 5. The learned DR on the other hand supported the decision of the authorities below. He argued that on merits the appellant is not entitled to duty free import under Notification No.13/81 for the refrigerated trucks inasmuch as they cannot be considered as ....

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....igeration Units imported availing of exemption under Notification No.13/81 Cus. dated 9.2.81 as amended vide B/E Nos.2380/26.11.93, 2383/29.11.93, 15515/5.4.95. The same shall be paid to the President of India, i.e., the difference between the duty ordinarily payable without any exemption and duty payable under the EPCG Scheme." On expiry of the bank guarantee, the department initiated action for recovery by issue of show-cause notice dated 1.6.2000 proposing demand of duty to the extent of Rs. 22,42,000/- by way of customs duty. Duties stand confirmed by the original authority as well as upheld by the Commissioner (A). The grievance of the appellant is that they were not put on notice as to why the benefit of EOU Notification No.13/81-C....