2018 (11) TMI 728

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....the Electrical Motors falling under CETH 85030029, 85015110, 85015210 and 85015310. They were operating as an 100% Export Oriented Unit (EOU). They are having another unit in the adjacent premises engaged in manufacture Electrical Motors, AC Generators & AC Drives falling under CETH 85013119, 85013210, 85013310, 85013410, 85015110, 85015210, 85015310 & 52044010. The unit in adjacent premises is a domestic tariff area unit. 2.2 Respondent vide letter dated 16.06.2007 intimated to the development Commissioner regarding exit from EOU scheme in terms of Para 6.18(e) of the Foreign Trade Policy, 2004-09. They discharged the duty liability arising on account of de-bonding activities of EOU and obtained "No Dues" Certificate on 21.08.2007. Ther....

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....ed from EOU were actual production of DTA unit in adjacent premises. During the periods April 2008 to 14.07.2008 they had manufactured and cleared 4500 electric motors valued at Rs. 5,83,45,205/- to their DTA without obtaining the permission from Development Commissioner. The said 4500 electric motors cleared by the EOU to their DTA unit without payment of duty were also liable for confiscation. However since these goods were not available as already cleared by the DTA. 2.7 A show cause notice dated 25.11.2008 was issued to the respondents proposing the confiscation of the seized goods and demanding duty on 520 electric motor collectively valued a Rs. 64,45,839/- cleared by EOU to DTA unit. Demand was also made on the respondents DTA uni....

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....ng the case is the debonding of EOU without receiving the debonding certificate from the designated authority. b) the main reason for dropping has been explained in para 19.4 of the order. He has held that the assessee could not keep the plant and machinery idle. Even though undoubtedly goods have been manufactured in the EOU premises, without debonding order of development Commissioner, procedural violations have taken place. In view of above, the learned Commissioner has erred in assessing the circumstances of the case and dropped the proceeding without assigning proper legal reasoning. 4.1 We have heard Shri A B Kulgod, Assistant Commissioner, Authorized Representative for the revenue, who reiterated the grounds taken in appeal.....