2017 (10) TMI 1031

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....he case are that the appellant/assessee is engaged in the manufacture of cotton yarn and knitted fabrics and are registered with a Central Excise Department. They had set up a 100% EOU for manufacture of the said items. Subsequently, they have applied for de-bonding the said unit in terms of para 6.18 of the Foreign Trade Policy. The de-bonding was done on 16/05/2008. The appellant/assessee had paid applicable duty on capital goods, raw materials, packing materials and finished goods as on the date of de-bonding. Subsequently, on verification of records of the appellant/assessee during the course of audit, the Revenue entertained a view that the appellant/assessee did not discharge the full duty liability in respect of goods lying in stock ....

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....the Revenue contesting the findings in the impugned order has already been decided in the assessee's own case, again on a Revenue's appeal, by the Tribunal. We have perused final order No. 53902/2016 dated 21/09/2016 in the assessee's case. The Tribunal in the said case observed as below :- "6. The admitted facts are that the respondents were using only the indigenously procured raw materials and in normal course, they are rightly eligible for the rate of duty as prescribed by Sl. No. 3 of the above mentioned notification. However, they are claiming the deemed export on inputs procured indigenously, which has put them in debar in terms of the explanation settled in the said Sl. No. 3 on 06/07/2007. Further, it is also an admitted fact th....

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....tely misdirected himself in appreciating the facts as well as legal provisions with reference to this demand. Provisions of Section 3 will apply when the goods are manufactured or produced. No excise duty can be demanded on work in progress stock. These items in various stages of processing have not reached RG-1 stage and the same are not marketable. In any case, the appellant/assessee had subsequently paid duty as applicable when the goods reached the marketable finished stage, at the time of clearance. All the benefits availed by the appellant/ assessee as 100% EOU have been surrendered at the time of de-bonding. As such, the present order confirming duty liability on work in progress in terms of Section 3 is without any legal basis. 6....