2008 (10) TMI 209

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing the records and hearing both sides, I note that the appellants, as a 100% Export-Oriented Unit, were engaged in the manufacture and export of polished granite slabs during the material period and that, during the months of November & December 2003, the vehicles used for clearance and transportation of the slabs for export were involved in road accidents and, consequently, the granite slaps wer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... & December 2003 were damaged in road accidents when the goods were in transit to the point of export. Again, it is not in dispute that these damaged slabs were scrapped and abandoned under intimation to the department. The SCN was issued in July 2006 under Rule 19 of the Central Excise Rules, 2002 in terms of the bond executed by the EOU. In terms of this bond, the EOU was bound to export the goo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n, however, was not applicable to such goods 'if brought to any other place in India'. In other words, excisable goods produced by an EOU and removed to the domestic tariff area (DTA) were chargeable to duty. Admittedly, in the present case, the granite slabs cleared by the EOU never reached the DTA. They eventually ended up as "scrap", which was abandoned. Thus the appellants could legitimately c....