2018 (4) TMI 236

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....rder on 02.11.2017 where a direction was issued to the Tribunal to dispose of the appeal within three months. 2. The brief facts of the case are that in the year of 1997/ the appellant has established a factory being a 100% Export Oriented Unit (EOU) to manufacture and export of Silk Ties and Silk Fabric. In terms of the LOP granted on 06.10.1997, the appellants were permitted to set up the EOU for manufacture and export of the above mentioned items. For the purpose, appellant has imported capital goods which were duty free. At the same time appellant has also imported duty free raw-material. The appellant has exported the goods but could not fulfill the complete obligations. So, the duty was demanded on the capital goods as well as on t....

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....from the payment of duty as the condition for exemption on the capital goods was only limited for installation of the capital goods and used within the unit for the manufacture of goods for export. As recorded earlier by us, it is undisputed that the capital goods which were procured by claiming benefit of exemption under Notification No. 126/ 94-Cus was installed and used for production of goods for export. We find that as per notification, the demand of the duty on the capital goods cannot be sustained. We find strong force in the contentions raised by the Id Counsel that the ratio of the decision of the tribunal in the case of   Semco Electric Pvt. Ltd (supra) squarely covers the issue in their Favour. We may reproduce the said....

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....Exim  Policy within one year of importation or procurement of such  goods or within such extended period not exceeding one year  as the Asstt. Commissioner or Dye Commissioner may allow on being satisfied that there is sufficient cause In other words, the Notification provides for levy of duty only on raw materials, components, spares and consumables for failure to achieve NFEP and there is no provision in the Notification for demand of duty on capital goods in the event of unit failing to achieve NFEP. This view has already been expressed by the Tribunal in the case of Evergreen Synthetics Ltd V, CC & E, Surat [2002 (147) E.L.T. 907],"   He submits that the Notification No. 52/2003 came into existence on 31.03.2003 w....