TaxTMI 
TaxTMI 
2019 (4) TMI 1683
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....hile upholding the order passed by the lower adjudicating authority. 2. The issue involved in this appeal is that the appellant is Central Excise registrant engaged in the manufacture of Sand Stone Tiles and Slate Tiles falling under Chapter Sub-Heading 25162200 of the Schedule to the Central Excise Tariff Act, 1985. The appellant had filed a refund claim of Rs. 11,78,430/- in respect of differential duty paid by them under Notification No. 22/2003-CE dated 31.3.2012 as amended on the capital goods procured indigenously as against the duty payable @ 3.09%. The appellant is a 100% Export Oriented Unit and applied for debonding of the unit under the prevailing EPCG Scheme for Domestic Tariff Area (DTA) unit. The appellant's claim for differ....
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....tification No. 23/2003 which was amended by Notification No. 24/2008-CE dated 11.4.2008 which stated at paragraph 2 as under : (2) after the paragraph 8, before the clause (i), the following proviso shall be inserted namely:- "Provided that no such clearance or debonding of capital goods under the Export Promotion Capital Goods Scheme of Chapter 5 of the Foreign Trade Policy shall be allowed if the user industry has not fulfilled the positive NFE criteria at the time of clearance or debonding in terms of para 6.18 (d) of Foreign Trade Policy." 4. From the perusal of the above condition, it is evident that any unit which has obtained positive net foreign exchange earning gets entitled to benefit of EPCG scheme. Accordingly, it was pr....
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....tion No. 64/2008-Cus. dated 9.5.2008 can be extended to the indigenously manufactured goods at the time of their debonding by 100% EOU and migrating to EPCG scheme. Therefore, he submits that the impugned order does not suffer from any infirmity and required to be upheld in the appeal. 7. We have heard the learned Advocate on behalf of the appellant and learned Authorised Representative on behalf of the Revenue and also perused the appeal record. 8. The issue to be determined is as to whether the appellant is entitled for the benefit of EPCG scheme at the time of debonding of their unit while exiting from 100% EOU scheme. The appellant has applied for opting out of 100% EOU scheme with the Jurisdictional Development Commissioner i.e. NS....
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....ation issued by the Ministry of Finance. Para 8 of the said Notification stipulates that no such clearance or debonding of capital goods under EPCG Scheme of Chapter 5 of Foreign Trade Policy shall be allowed if the user industry has not fulfilled the positive NFE criteria at the time of clearance or debonding in terms of para 6.18 (d) of the Foreign Trade Policy. Thereafter, the procedure for such clearance and method of calculation of depreciation are mentioned in the said Notification. Admittedly, in the present case, the appellant-assessee are entitled for debonding as they have achieved positive NFE. Accordingly, debonding was permissible in terms of the said Notification. It is to be noted that Notification No.22/2003-CE is for provid....
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....he appellant-assessee emphasized that the demand is not tenable as there is Revenue neutral situation resulting no addition to the Government revenue. We find that the concept of Revenue neutrality cannot be considered as a bar for non confirmation of tax dues, otherwise payable by the appellant-assessee. If that be so, then in many of the cases the appellant themselves can choose whether to pay duty on goods or services, when the credit is available; or to pay duty only on final product. Such discretion is not vested with tax payer. This is very much against the concept of value added taxation. The argument that the appellant-assessee need not pay duty as the same is available for credit is against the appellant-assessee's own case. If tha....