2016 (11) TMI 688

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....falling under Chapter 52 of the Central Excise Tariff Act, 1985.  It was observed that for sale of cotton yarn and cotton waste in DTA, the EOUs were availing the benefit of concessional rate of cenvat duty leviable under Section 3(1) of the Central Excise Act, 1944, as prescribed under Notification No.08/97-CE dated 1.3.1997 and 06/97 dated 1.3.1997 read with the provisions of paragraphs 9.9(b) and 9.20 or 6.8(b) and 6.8(d) of the relevant Exim Policies; that the EOU was clearing cotton waste/hard waste in DTA as prescribed under Notification No.6/97-CE dated 1.3.1997; that the EOU was required to effect DTA sale of both cotton yarn and cotton waste together within the limit of 50% of FOB value of exports as prescribed in Exim Policy ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uld be leviable under Customs Act, 1962 or any other law on like goods produced or manufactured outside India; that since the EOU had not brought to the notice of Central Excise department the above fact, did not obtain permission from Development Commissioner, SEEPZ, Mumbai for DTA sale of cotton waste/hard waste, did not mention in the records about the facts, there was suppression, willful mis-statement on the part of the appellants, hence proviso to Section 11A(1) was invoked for demanding duty beyond normal period.  Therefore, Customs/cenvat duty of Rs. 22,77,316/- (Rs.17,00,673/- duty + Rs. 1,06,922/- CVD + Rs. 3,69,721/- SAD) on the excess DTA clearances effected during the period 11.2.2002 to 17.4.2002 was demanded under provis....