2018 (8) TMI 948

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....enalties. 2. Ld. Counsel for the appellant pointed out that the appellant is 100% EOU. A case was booked against the appellant for exceeding the limit of their DTA clearance. He argued that the entire demand is based on ER-II returns submitted by the appellant and the entire demand is raised by invoking extended period of limitation. Ld. Counsel argued that they have declared the entire clearances for export and DTA in ER-II returns and the entire case is based on the ER-II returns. In these circumstances, he argued that extended period of limitation cannot be invoked. He further argued that during this period two different audits were conducted and none of the audit had raised this issue. He also relied on the decision of the Hon'bl....

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....ircular F.No. 305/86/98-FTT dated 17.11.1999 wherein it has been clarified that B-17 Bond does not cover advance DTA sale and for this purpose separate bond as prescribed in the Handbook of Procedure shall have to be executed. 5. We have gone through the rival submissions. We find that in terms of decision of the Hon'ble Gujarat High Court in the case of Anita Synthetics Pvt. Limited (supra), deemed exports cannot be clubbed for the purpose of calculation of clearances in DTA and thus, the appeal on this count is allowed. 6. A perusal of the show cause notice shows that the entire data for issue of show cause notice has been derived from the returns filed by the assessee. In the circumstances, the appellant has disclosed the entir....