TaxTMI 
TaxTMI 
2024 (2) TMI 1013
X X X X Extracts X X X X
X X X X Extracts X X X X
....nous sources. Show Cause Notice was issued to the Appellant on the ground that the usage of the inputs vis-a-vis manufacture of finished goods are not as per the Standard Input Output Norms described under SION. One Show Cause Notice was issued for the period April 2007 to March 2008 on 23/06/2009 and another Show Cause Notice was issued for the period April 2008 to October 2009 on 18/03/2010. Both the Show Cause Notices were taken up for adjudication together by the Adjudication Authority. After due process, the Adjudicating Authority has confirmed the demands. Being aggrieved, the Appellant is before the Tribunal. 2. The Learned Chartered Accountant submits that the Department has only considered the finished goods which have been export....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rity, still he refused to consider the same on the ground that the Show Cause Notice was issued for prior period and the Note 2 was amended subsequently. In view of these submissions, he prays that the Appeal may be allowed on merits. 5. He submits that the Show Cause Notice for the period April 2007 to March 2008 has been issued on 23/06/2009 and SCN itself admits that the data has been gathered from the ER-2 Returns filed by the Appellant. This shows that there was no suppression on their part. Further, the entire issue is that of interpretation only as to whether the defective PETs also should be considered as part of the output or not. This shows that the Appellant should not be fastened with the confirmed demand for the extended perio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t quality quantity of PET. Some percentage of the goods would be defective which can be exported. In their case such defect are less than 1% of the total manufactured goods which is well within the industry norms. Since they are registered as EOU, they are also allowed to clear such goods to the domestic area on payment of Excise Duty. He submits that all such defective goods were cleared to the DTA based on the transaction value on which proper Excise Duty has been paid and these details have been recorded in the ER-2/ER-5 Returns. He also draws our attention to Notification No.52/2003-Cus dated 31 March 2003, wherein at Para 3, the Notification specifies that if the goods are not exported even the waste scrap etc. can be cleared to the Do....