TaxTMI 
TaxTMI 
2017 (5) TMI 1338
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....une 2007 to October 2011, the respondents being a 100% EOU, cleared inputs procured by them on payment of applicable duties by debiting the duties in CENVAT account. It is the case of the Revenue in the show-cause notices that the respondent having imported and indigenously procured materials / inputs by availing benefit of Notification No.52/2003-Cus. dt. 31/03/2003 and No.22/2003-CE dt. 31/03/2003 did not pay any duties on the inputs but while clearing the same they are required to pay applicable duties which should be paid in cash and cannot utilise the CENVAT credit. The audit raised this query which was followed by show-cause notices to the respondents. The show-cause notices in question seek to demand the duty amounts under the provis....
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....the said orders. 3.1. Learned AR after taking me through the Orders-in-Appeal submits that i. the Commissioner(Appeals) has erred in allowing the appeal by holding incorrectly that the inputs received duty free by the respondents when cleared as such were equated wrongly as clearance of finished goods from EOU to DTA; ii. the respondent/assessee is a 100% EOU and duty free imports were cleared into DTA for which duty liability has to be paid in current account only. It cannot be done so by debit in the CENVAT account as the inputs which are imported were governed by the provisions of Notification No.52/2003-Cus. Hence Department has foregone the customs duty on such imports; iii. the duty exempted at the time o....
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....aid permissions clearly indicated that clearances can be effected on payment of applicable duties. It is his submission that the entire show-cause notice seeks to demand the Central Excise duty under the provisions of Section 11A of the Central Excise Act which would mean that the amounts paid or debited by the appellant in the CENVAT account is towards Central Excise duty only. Hence the point which has been raised in the Department's appeal that imported raw materials cleared as such needs to be discharged with Customs duty is a new point which was not in show-cause notice. He would also draw my attention to the show-cause notice and submit that the show-cause notice only seeks to demand duty which has already been debited in CENVAT a....
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....le duties on the inputs cleared from their premises or otherwise. 6. Undisputed facts are that respondents are 100% EOU; procured inputs indigenously as well as imported the same by claiming the benefit of Notifications Nos.52/2003-Cus and No.22/2003-CE which enables them to import the goods without payment of duty; they have sought the permissions of the authorities to clear the inputs which they are unable to consume in 100% EOU; authorities granted permission to respondents for clearance of such inputs to DTA on discharge of applicable duties; the applicable duties have been discharged by the respondent by debit in the CENVAT account considering them as Central Excise duty. 7. I find that the first appellate authority while setting....
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....ties cannot be questioned is the law which has been settled by the judgment of the Tribunal in the case of CCE&C, Visakhapatnam-I Vs. Matrix Laboratories Ltd. in Final Order No.932&933/2011 dt. 23/12/2011. The ratio of the said decision is in paragraph No.5 which I reproduce. 5. I have given careful consideration to the submissions. It appears from the records that the respondent was a DTA unit prior to December 2007. In this case, they had procured inputs and capital goods by way of import and also from indigenous sources and had taken CENVAT credit of CVD/Central Excise duty paid thereon. Apparently, it was out of such accumulated credit that the respondent made part-payment of duty on the inputs (imported duty-free under Notific....