2008 (9) TMI 343

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.... raw materials, components, spares availing total exemption as provided under Notification No. 52/2002, dated 31-3-03 and 23/03, dated 31-3-03. The respondent was required to manufacture cathode ray tubes and export them. (b) Due to unforeseen circumstances, they could not utilise the capital goods and other inputs imported and wanted to exit out of EHTP Scheme. The STPI authorities gave 'in principle' de-bonding permission vide letter dated 15-1-04. The Customs authorities were required to calculate the Customs duty on the goods to be de-bonded and intimate the payment of duty to the 5TPI authorities so that final exit order from the scheme could be issued. (c) The original authority held that since the final exit order was yet to be....

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....ing. When the goods are removed from the bond the duty is payable at the rate of duty prevalent at the time of clearance; that the benefit of the notifications which were available should be extended. The unit has converted from being an EHTP unit to DTA unit and the same does not involve any change of premises. The jurisdiction under the Customs Act and subsequently the jurisdiction under the Central Excise Act are with the same Superintendent, Range I, Malanpur. The formalities of taking registration certificate under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods), Rules, 1996 was also taken from the same officer. There can be no doubt about the end-use conditions having been fulfilled in thi....

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.... exit order from the scheme will be given only on payment of dues as stipulated under condition of Notification No. 52/2003. The concession otherwise available is sought be denied as final exit order was not given by the STPI authorities at the time of assessment. If this reasoning is taken to logical end then, as the unit is still EHTP only nil duty can be assessed. Such an approach would lead to a situation where they would never be able to exit. This cannot be the intention of the policy. The procedure should work as hand maid of the policy and not the other way of about. The Commissioner was correct in holding that the duty was being demanded only in pursuance of the decision taken to exit from EHTP scheme. 6.3 It is a case where the....