TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 684
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....ng demand of Rs. 5,51,92,879/- being the duty leviable on supplies effected between 1st March 1994 and 2nd April 1994 to Superintendent Engineer, Irrigation Department, Patna for execution of 'Bihar Public Tubewell Project' which was awarded pursuant to 'international competitive bidding' process. Appellant is a '100% export oriented unit' operating against Letter of Permission (LoP) issued by the jurisdictional Development Commissioner and the impugned goods were proceeded against on the premise that these goods were being cleared into the 'domestic tariff area' on which duty liability arises under section 3 of Central Excise Act, 1944, in show cause notice issued on 12th May 1994. 2. According to Learned Counsel for appellant, approval o....
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.... that such clearances are entitled to the benefit of notification no. 125/84-CE dated 26th May 1984. Placing reliance on the decision of the Hon'ble Supreme Court in Suchitra Components Ltd v. Commissioner of Central Excise, Guntur [2007 (78) RLT 463 (SC)] to the effect that any circular that confer beneficial effect should be applied retrospectively, entitlement of exemption in circular no. 618/9/2002-CX dated 13th February 2002 of Central Board of Excise & Customs was claimed. Reliance is also placed on the overruling of the Larger Bench of the Tribunal in Jaipur Golden Transport Co Ltd v. Commissioner of Central Excise, Surat [2007 (215) ELT 503 (Tri-LB)], by the Hon'ble Supreme Court in Commissioner of Central Excise, Visakhapat....
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....evan Diesels & Electricals Ltd v. Commissioner of Central Excise Puducherry [2016 (340) ELT 594 (Tri-Chennai)], of the Hon'ble High Court of Karnataka in Commissioner of Customs, Bangalore v. Leela Scottish Lace Ltd [2011 (268) ELT 185 (Kar.)] and of the Hon'ble Supreme Court in Commissioner of Central Excise v. Mewar Bartan Nirman Udyog [2008 (231) ELT 27 (SC)]; in the last, attention was drawn to the mandate of strict interpretation as laid down therein. 5. Having heard the rival submissions at length, the facts that remain undisputed are that the appellant is a '100% export oriented unit' entitled to duty-free clearance of raw materials, consumables and capital goods required for manufacture of the permitted products intended fo....
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....ation of such duties which, would not crystallise when cleared for export. By any description and, notwithstanding the communications emanating from the jurisdictional Development Commissioner and Ministry of Commerce, the clearance cannot be designated as anything other than sale in India. Thereby the provisions of Section 3 of Central Excise Act, 1944 with appropriate duty liability will get triggered. 7. In re Sri Varalakshmi Jute Twine Mills P Ltd, the issue was limited to the chargeability under section 3(1) of Central Excise Act, 1944 vis-à-vis the proviso, on goods clandestinely removed which would apply only when the permission of the Development Commissioner was not obtained. In re Suchitra Components Ltd, the claim of the ....