TaxTMI 
TaxTMI 
2017 (10) TMI 492
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....m April, 2007 to March, 2014. The details of the impugned orders and the period and the demands are given in the following chart: Sr. No Appeal No. SCN dated Period Excise Duty demand Penalty Penalty on Rakesh Vohra Penalty on Manish Gaur 1. E/58784- 58786/2013-EX (DB) March 23, 2012 April, 2007 to March, 2011 54,254,238 54,254,238 6,000,000 4,000,000 2. E/53588-53590/2014-EX (DB) July 1, 2013 April, 2011 to March, 2012 6,341,924 6,341,924 500,000 200,000 3. E/51717-51719/2015-EX (DB) March 25, 2014 April, 2012 to March, 2013 15,196,365 15,196,365 1,000,000 200,000 4. E/51714-51716/2015-EX (DB) May 25, 2014 April, 2013 to March, 2014 5,555,186 5,555,186 500,000 200,000 2. The facts as per the show cause notice dated 22 May, 2014 are that the appellant is 100% EOU and have executed the Bond in form B 17, for a value of Rs. 15.34 crore and have been removing the finished goods which are excisable manufactured by them into DTA. For the purpose they have been procuring Capital Goods, inputs and raw materials etc., without payment of duty under Notification No. 22/2....
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....id goods till the date of payment of such duty. Further Clause (ii) provides in case the goods other than capital goods, such goods as are not proved to the satisfaction of the said officer to have been used in connection with the production or packaging of goods in accordance with SION for export out of India or cleared for home consumption within a period of three years from the date of import or procurement thereof or within such extended period as the said officer may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow; provided that- (a) no SION has been notified, the generation of waste scrap and remnants up to 2% of input quantity shall be allowed; (b) where additional items other than those given in SION are required as input, or where generation of waste scrap and remnants is beyond 2% of the input quantity, use of such goods shall be allowed on the basis of self-declared norms till such norms are fixed on ad hoc basis by the Jurisdictional Development Commissioner....... 4. Accordingly, it appeared to Department that it is not proved to the satisfaction of the Jurisdictional Assistant/Deputy Com....
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.... goods themselves within their premises by 20 December, 2013 and are giving advance intimation of the said activity. On perusal of the letters being (RUD 4, 5, 6 and 7) it is evident that the appellant in all the letters have submitted that the materials to be destroyed are in the nature of raw materials, semi processed goods and consumables which have become waste and scrap during the process of manufacturing, which subsequently became un-usable for them. It further appeared from the said letters that the subject is self-destruction of waste and scrap material within 100% EOU premises. The information given is in terms of paragraph 6.15 (B) of Foreign Trade Policy 2009 14. It appeared to Revenue that the appellant has not gone through the provisions laid down in the Notification No.22/2003 CE as amended and Notification No. 52/2003 - CUS as amended. It further appeared to Revenue that the appellant was required to follow the provisions as laid down under aforementioned notifications with due satisfaction of proper officer, whereas they destroyed/disposed off the material said to be waste/rejected raw material on their own on the date fixed by them. There was no provision of self-d....
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....to the Assistant/Deputy Commissioner CUStoms and Central Excise, Division-III Noida. The said letter is reproduced herein for a better appreciation:- "25th February, 2015 The Asst/Deputy Commissioner, CUStoms and Central Excise Division III, Noida Sub: Self Destruction of waste and scrap material within 100% EOU Premises Ref: PARA 6.15 (B) OF FOREIGN TRADE POLICY 2009-14 read with NOTIFICATION 52/2003-CUS dated 31.03.2003 Dear Madam, Pl refer the above captioned subject. We are enclosing a list of inventory items comprising of 14,54,059 Nos of (Bare PCB, Capacitors, Color Wheel, DMD, sheet metal parts etc) and valued at INR 79,59,099/- These materials are waste, scrap and remnants that have arisen during the process of manufacturing, production or packaging. Subsequently they have become unusable/unit for future production and we have decided to physically destroy them within the 100% EOU premises in terms of PARA 6.15 (B) OF FOREIGN TRADE POLLICY 2009-14read with NOTIFICATION 52/2003-CUS dated 31.03.2003. We are enclosing the list of said goods which are required to be destructed within our 100% EOU (refer Ann....
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....enue that the appellant have not destroyed the defective inputs, WIP, Semi finished goods etc and have diverted the same. So far for the period 2007-08 to 2009-10 is concerned the appellant had, during the course of adjudication before the learned Commissioner filed a clarification from the Chartered Accountant who have certified that after going through the books of account and the balance sheets, profit and loss account etc., it was found that during the period 2009 10, goods of total value of Rs. 1,49,78,339/- which relates to exceptional material request raised by them, they have wrongly recorded as goods written off in the balance-sheet. The said items are not actually written off from the books of account, but raw material consumption, which were wrongly shown as written off. Accordingly, the value of goods written off for the period 2007-08 to 2009-10 aggregates Rs. 9,63,58,068/- instead of Rs. 11,13,36,407/- as taken by the Department in the show cause notice dated 23 March, 2012. The learned counsel further urges that the learned Commissioner have erred in ignoring the said clarification without any reason or calling any further explanation from the appellant. The learned ....