AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 1061
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....nd executed by them; 2. I direct M/s Ally Pharma Options Private Limited, Plot No. J 7, MIDC, Tarapur Industrial Area, Boisar, District Palghar, Pin 401 506 to also pay interest on the above amounts under Section 11AA of the Central Excise Act, 1944; and 3. I impose a penalty of Rs. 3,72,87,926/- (Rupees three crore seventy two lakh eighty seven thousand nine hundred twenty six only) upon M/s Ally Pharma Options Private Limited, Plot No. J-7, MIDC, Tarapur Industrial Area, Boisar, District Palghar, Pin 401 506 under Section 11AC(1)(a) of the Central Excise Act, 1944 and Rule 25(1)(d) of the Central Excise Rules, 2002" 2.1 Appellant is an Export Oriented Unit. It is exporting it goods directly and also through merchant exporters. During course of audit it was noticed that in respect of the exports made through Merchant Exporters certain discrepancies such as on some of the shipping bills in respect of these exported goods, the status of the appellant EOU was not shown, in others, the name of the noticee and its status as an EOU was not mentioned. 2.2 Treating this goods as not export goods for the reasons stated in 2.1, the demand of c....
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....e of technical lapse. • The factum of export of the goods against which these demands have been made can be established for each consignment on the basis of the series of the documents that were prepared for exporting them. In fact in each case proof of export was also submitted to the jurisdictional authority in the manner prescribed. Impugned order does not dispute this fact but only relies on the Board Circular of 1991 to confirm the demands against them. • To this ratio was the Board's Circular number 03/ 91-Cus dated 24.01.1991 and the decisions of the CESTAT in LT Karle & Company, 2007 (2007) ELT 358, PML Industries, 2004 (172) ELT 281, Leela Scottish Lace, 2003 (156) ELT 548, Ikea Trading, 2003 (157) ELT 359. 3.3 Arguing for the revenue learned authorized representative while re-iterating the findings recorded in the impugned order, stated that the • Circular 03/91 Customs dated 24.01.1991, clearly stated that the Name of EOU should have been mentioned in the Shipping Bill and other export documents. • EPCES Circular No.30 dated 12.09.2006 and the DGFT Policy Circular number 19 (RE-2006)/2004-2009 dated 11.09.2....
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....indings: "6. The above facts show that the noticee indeed made DTA clearances to the third parties under invoice without making payment of central excise duties and that the name and status of the noticee was not written on the majority of the export documents. The reliance placed by the noticee on the Board's Circular number 03/ 91-Cus dated 24.01.1991 itself shows abhorrence to this practice and states the procedure to be followed in this situation. It reads thus - "Attention is invited to provisions contained in Chapter-XXII and Chapter-XXIII of Import & Export Policy (April 1990 - March, 1993) in terms of which Third Party Exports have been allowed in the case of 100% EOUS/ units located in FTZS/ EPZS. The said provisions are applicable for exports made from 01.04.1990. The following guidelines are issued for the information/ guidance of all concerned - (i) 100% EQUs/ or FTZ/ EPZ unit may procure export orders from the Third Party (ii) The name of the Third Party may or may not appear on the export documents such as Invoice, Shipping Bill, Bank Certificate etc. but a condition shall be stipulated thereon that all export benefi....
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....ces to these third parties, which would tantamount to DTA clearances. The noticee do not deny this fact. 10. In the circumstances, the noticee was liable to pay central excise duties, while making such DTA clearances, under the proviso to Section 3(1) of the Central Excise Act, 1944. Having not paid the same, the demands of these unpaid central excise duties of Rs. 2,61,79,353/-, Rs. 40,26,798/- and Rs. 70,81,775/-, as made in the three notices would become determinable and are determined under the provisions of Section 11A(10) of the Central Excise Act, 1944 for being recovered from the noticee also in enforcement of the B-17 Bond. The noticee would also pay interest on these unpaid amounts under Section 11AA of the Central Excise Act, 1944. 11. The CBEC, the EPECS and the DGFT have all laid down the condition of the name and status of the EOU to be mentioned in the shipping documents. The satisfaction thereof, therefore, would treat deemed export benefits for the noticee. Coupled therewith is the fact that the noticee made clearances to the third parties under central excise invoices indicating the DTA sales. In the circumstances, the noticee, being ....
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....8/DT.06.08.2007 PHAKT OVERSEAS 27/06.08.07 337714 13 APOPL/032/07, 08/DT.17.09.2007 Simrone Pharmaceuticals Ind. Ltd. 32/17.09.07 32320 14 APOPL/036/07 08/DT.30.09.2007 PHAKT OVERSEAS 36/30.09.07 860627 15 APOPL/037/07 08/DT.30.09.2007 PHAKT OVERSEAS 37/30.09.07 463415 16 APOPL/040/07. 08/DT.07.10.2007 PHAKT OVERSEAS 40/07.10.07 298800 17 APOPL/044/07 08/DT.06.11.2007 PSA INTERNATIONAL 44/06.11.07 9764781 18 APOPL_045/07 08/DT.15.11.2007 BISHOP PHARMA LAB 45/15.11.07 1234770 19 APOPL/046/07 08/DT.19.11.2007 BDH (T.P.L) 46/19.11.07 992201 20 APOPL/047/07 08/1.22,11.2007 PHAKT OVERSEAS 47/22.11.07 1040000 21 APOPL/048/07 08/DT.25.11.2007 INDO GULF CO. 48/25.11.07 1329155 22 APOPL/049/07 08/DT.29.11.2007 BISHOP PHARMA LAB 49/29.11.07 5866081 23 APOPL/050/07 08/DT.04.12.2007 BISHOP PHARMA LAB 50/04.12.07 302192 24 APOPL/051/07 08/DT.06.12.2007 BDH (T.P.I.) 51/06.12.07 1796193 25 APOPL/052/07 08/DT.20.12.2007 ....
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.... 872352 52 APOPL/033/08 09/DT.18.09.2008 BDH 33/18.09.08 872352 53 APOPL/034/08 09/DT.21.09.2008 BDH 34/21.09.08 921984 54 APOPL/035/08 09/DT.21.09.2008 BDH 35/21.09.08 614656 55 APOPL/036/08 09/DT 29.09.2008 MAXHEAL PHARMACEUTIC ALS 36/29.09.08 898560 56 APOPL/041/08 - 09/DT.03.11.2008 MAXHEAL PHARMACEUTIC ALS 41/03.11.08 1008000! 57 APOPL/045/08 09/DT.19.11.2008 INDUS PHARMA 45/19.11.08 210000 58 APOPL/058/08 09/DT.30.12.2008 BDH (T.P.L) 58/30.12.08 2663525 59 APOPL/059/08 09/DT 30.12.2008 BDH (T.P.L) 59/30.12.08 14523421 60 APOPL/068/08 (19/DT.19.02.2009 INDUS PHARMA 68/19.02.09 385000 61 APOPL/003/09 10/DT.26.04.09 MAXHEAL PHARMACEUTIC ALS 3/26.04.09 98500 62 APOPL/011/09 10/DT. 14.06.09 PRAWIL LABORATORIES LTD 12/14.06.09 3696730 63 APOPL/017/09 10/DT.19.07.09 PRAWIL LABORATORIES LID 17/19.07.09 3052410 64 APOPL/029/09 10/DT.30.08.09 INDUS PHARMACEUTIC ALS 29/30.08.09 298200 65 APOPL/033/09 10/DT.03.09.09 RIDDHI IMPEX 33/03.....
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....1 11/05.05.2011 MAXHEAL PHARMACEUTIC ALS 004/11 12/05.05.2011 540644 92 APOPL/007/10 2. 11/25.05.2011 CADILA HEALTHCARE 007/11 12/25.05.2011 598000 93 APOPL/009/10 24/26.05.2011 BLUE MAP PHARMACHEM 009/11 12/26.05.2011 490390 94 APOPL/013/10 11/09.06.2011 BLUE MAP PHARMACHEM 013/11 12/09/06/2011 1122920 95 APOPL/022/10 611H27.07.2011 BLUE MAP PHARMACHEM 021/11 12/21.07.2011 1062720 96 JAPOPL/051/10 611/21.11.2011 BLUE MAP PHARMACHEM 051/11 - 12/21.11.2011 1093716 97 APOPL/052/10 211/22.11.2011 CADILA HEALTHCARE 052/11. | 12/21.11.2011 2222500 98 APOPL/053/10 sh1/22.11.2011 CADILA HEALTHCARE 053/11 12/22.11.2011 1072500 99 APOPL/059/10 11/02.12.2011 BLUE MAP PHARMACHEM 059/11 12/12.12.2011 1093716 10 0 APOPL/060/10 10 11/13.12.2013 MAXHEAL 060/11 12/13.12.2011 511373 10 1 JAPOPL/069/10 N 1 /11/11.01.2012 PHARMACEUTIC ALS 069/11 12/11.01.2012 552000 102 APOPL/070/10 Y211/11.01.2012 MAXHEAL LABORATIORIES 070/11 12/11.01.2012 272160 103 APOPL/078/10 T 1311/02....
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....2000 18 APOPL/066/12-13 dated 06.11.2012 Maxheal Laboratories 066/12-13 dated 106.11.2012 180000 19 APOPL/071/12-13 dated 27.11.2012 Cadila Healthcare Ltd 071/12-13 dated 27.11.2012 47695 20 APOPL/074/12-13 dated 06.12.2012 Blue Map Pharmachem 074/12-13 dated 06.12.2012 465000 21 APOPL/080/12-13 dated 07.01.2013 Maxheal Laboratories 080/12-13 dated 07.01.2013 775000 22 APOPL/081/12-13 dated 07.01.2013 Maxheal Laboratories 081/12-13 dated 107.01.2013 188800 Annexure A to Show Cause Notice Dated 04.03.2014 1 APOPL/088/12-13 Dt.03.02.13 Cadila Healthcare Ltd. 088/12-13 Dt.03.02.13 847000 2 APOPL/096/12-13 Dt.25.02.13 Cadila Healthcare Ltd. 097/12-13 Dt.25.02.13 871324 3 APOPL/099/12-13 Dt.11.03.13 Maxheal Laboratories 100/12-13 Dt. 11.03.13 540000 4 APOPL/102/12-13 Dt.11.03.13 Blue Map Pharmachem 103/12-13 Dt. 11.03.13 972000 5 APOPL/111/12-13 Dt.31.03.13 Maxheal Labortories 113/12-13 Dt.31.03.13 49920 6 APOPL/112/12-13 Dt.31.03.13 ....
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....nbsp;Pharmachem 060/13-14 Dt.21.10.13 1915200 29 APOPL/055/13-14 Dt.27.10.13 Cadila Healthcare Ltd. 063/13-14 Dt.27.10.13 709120 30 APOPL/061/13-14 Dt.24.11.13 Cadila Healthcare Ltd. 069/13-14 Dt.24.11.13 1385800 31 APOPL/066/13-14 Dt. 17.12.13 Cadila Healthcare Ltd. 074/13-14 Dt. 17.12.13 3001600 32 APOPL/067/13-14 Dt.25.12.13 Cadila Healthcare Ltd. . 075/13-14 Dt. 25,12,13 319872 33 APOPL/070/13-14 Dt- 31.12.13 Blue Map Pharmachem 078/13-14 Dt- 31.12.13 701250 4.5 Annexure to each of the show cause notice is an admission of the fact that goods were cleared for export from the premises of appellant. Also neither the show cause notice nor the impugned order state that the proof of export was not submitted by the appellant/ merchant exporter/ third party exporter, in any of the cases. When the goods were cleared for exports and proof of export submitted in each and every case, the demand made treating these goods to be cleared in DTA, is contrary to the provisions of the Rule 18 of the Central Excise Rules, 2002. In case of any unit whet....
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.... impugned duty contrary to the guidelines contained in the Circular. In the circumstances, we find that the impugned demand from Saritha Software Industries Ltd., is premature and uncalled for. We vacate the same and allow this appeal." 4.7 It could have been the case of the revenue that in view of the Circular of 1991 and of 2006, the benefit of export for the purpose of determining NFE, for the purpose of evaluating the performance of the unit should have been denied. However the performance of the EOU's is monitored by the Development Commissioner to whom the return showing the export turnover is furnished by the unit in the manner as prescribed. There is not even a whisper in the show cause notice or in the impugned order, that Development Commissioner has while evaluating the export performance of the unit, has denied the benefit of export in respect of these consignments cleared by the appellant in terms of para 6.10 of the Import Export Policy, 2009-14 read with para 6.18 of the Handbook of Procedures, 2009-14. 4.7.1 We are clear in our view that if the benefit is provided in terms of the statutory provision, the same can be circumscribed/ denied by taking resort to a ....