2018 (5) TMI 387

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....well as indigenously without payment of duty under Notification No. 52/2003-Cus. dated 31.03.200 and No. 22/2003-CE dated 31.03.2003. The appellants had cleared one Diesel Generator set to M/s. Oil and Natural Gas Corporation (ONGC), claiming exemption against Project Authority Certificate under Notification No. 12/2012-Cus. dated 17.03.2012. The said clearance was effected in DTA under Notification No. 23/2003-CE read with Notification No. 12/2012-Cus. The department took the view that since the appellants had cleared the goods at 'nil' rate of duty by availing exemption under Notification No. 12/2012-Cus., they are not eligible to avail benefit of Notification No. 22/2003-CE on the inputs procured by them for manufacture of the impugned D....

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....tion No. 12/2012-Cus., as also the inputs brought in for the above manufacture against CT-3 Certificate is in order. v) The supply of diesel generator sets against International supply of bidding does not require reversal of Cenvat credit earned on the inputs since it is deemed exports. vi) Shri K.S. Jain drew our attention to PAC issued by ONGC find in page-40 of the appeal book to point out that the supplies under the contract are being made to a project where the benefit of deemed export has been subscribed in accordance with para 8.2 (f) and 8.4.4 (iii) of the FTP 2004-2009. 3. On the other hand, Ld. AR supports the impugned order. He drew our attention to para-10 of the impugned order where the Commissioner (Appeal....

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....alance otherwise comparative disadvantage that DTA units manufacturing similar goods have to suffer duty on inputs phase. At the same time, it is to be kept in mind that the intended purpose of treating supply of goods to certain persons or organizations to be regarded as deemed exports is not only to provide a fillip for the goods manufactured in India but also enable saving of foreign exchange. For example para-8.2 of FTP lists categories (a) to (j) where supply of goods shall be regarded as deemed export, provided goods are manufactured in India. Sl. No. (a) extends deemed export relates to "supply of goods against advance authorization/advance licence holder in DTA. We further find that CBEC vide a Circular No. 268/01/2016-CX dated 16/0....

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....it is clarified that the second proviso to para 6 of the notification no. 22/2003-CE dated 31.03.2003 and the proviso to para 3 of notification no. 52/2003-Cus dated 31.03.2003 (refer para 1 of the circular) would not be applicable, in case of supply of manufactured goods by EOU to Advance Licence/Authorisation holder in DTA, without payment of Central Excise duty. We are of the considered opinion that this CBEC Circular will apply mutatis mutandis to supply of deemed exports covered by the category (f) of para-8.2 of FTP which covers supply of goods to a project of purpose for which the MoF, by a notification, permits import of such goods at zero customs duty. It is also clarified in para-8.2 that benefit of deemed export shall be avail....