TaxTMI 
TaxTMI 
2018 (8) TMI 951
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.... They have obtained LOP from Cochin Special Economic Zone (CSEZ) for effecting DTA clearance of the Iron ore products. The Department was issued a SCN dated 25.03.2008 alleging that the appellants being EOU have not paid duties of excise under proviso to Section 3(1) of Central Excise Act, 1944 on the DTA clearances made by them during the period from April 2003 to June 2006. The Commissioner of Central Excise has confirmed the duty of Rs. 3,64,34,215/- along with interest and penalty. 2. The learned counsel for the appellants contended that duty of Central Excise proviso to Section 3(1) of Central Excise Act, 1944 would become payable only if the goods cleared to DTA by an EOU are manufactured goods and in the instant case, there is no ....
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....ries P. Ltd.- 2007 (214) ELT 508 (Mad.) (xiii) Grasim Industries Ltd. Vs. UOI- 2011 (273) ELT 10 (SC) 3. The learned counsel for the appellants submitted that assuming but not submitting that the process amounts to appellants would be eligible for claiming the benefit of concessions available under Notification No. 23/2003-C.Ex. dated 31.03.2003. 4. The learned DR has contended that the learned counsel relied upon so many cases; however, the issue under discussion in all the cases cited was about excisability or to see whether sudden process undertaken amount to manufacture or otherwise in respect of DTA unit whereas in the present case, the issue before the Tribunal is applicability of duties on DTA clearances for any EOU th....
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.... this very Bench. Therefore, the appellants again hold their process as not amounting to manufacture only with an intention to avoid payments of applicable duties on DTA clearances. Clearances to DTA by any EOU assume the status of imported goods. At the time of import, it is not considered as to whether the goods imported are manufactured or otherwise. If the items are placed fine in the Customs Tariff Act, customs duty as applicable is levied. In the instant case also, the goods are to be treated as imported into India from any place outside India; therefore, applicable goods under Customs Act are squarely applicable. For the purpose, FTP manufacture could include agriculture, aquaculture, animal husbandry, sericulture, horticulture, pisc....
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....nt to manufacture or otherwise. All the decisions quoted therein are in respect of DTA units. It is not the contention of the appellants that their unit is a DTA unit; therefore, we are afraid that case law presented by the learned counsel for the appellants is not applicable to them. It is not denied by the appellants that they have obtained a license for EOU claiming that they are manufacturers of Iron ore; it is not also denied that they have obtained license from manufacturing bond in terms of Customs Act, 1962. As submitted by the learned AR, they have been availing CENVAT Credit and have been availing the refund of unutilized CENVAT Credit. The facts being so we find that the appellants cannot take the plea that their goods are not ma....
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....or manufactured,- [(i) xxx] (ii) by a 100% export-oriented undertaking and [(brought to any other place in India]; shall be an amount equal to the aggregate of the duties of customs which would be leviable [Under the Customs Act, 1962 or any other law for the time being in force], on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value; the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975 (51 of 1975). 6.2 It is clear from the above that in respect of 100% EO....
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....so to Section 3(i)(b) of the Central Excise Act, 1944. The goods cleared by the appellants i.e. Iron ore fall under CTH 26011110. 6.4 From the records of the case, we also find that the appellants have contravened the provisions of Rules 8, 17 of Central Excise Rules, 2002 by way of non-maintenance of account relating to production, description and removal of goods into DTA and have also not filed ER-2 Returns for the months from April 2003 to June 2006 and therefore, we hold that extended period is correctly invoked; however, we hold that the exemption available under Notification No. 23/2003-C.Ex. dated 31.03.2003 cannot be denied to the appellant if they are otherwise eligible for the same. For the determination of the applicability o....