2024 (11) TMI 1338

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.... and Service Tax, Valsad Commissionerate. The main issue before us is whether the Learned Commissioner is correct in confirming the central excise demand on debonding of a 100% EOU unit to DTA, on finished and semi-finished goods, which are either exported on bond or cleared in domestic market on payment of excise duty, during 18.12.2012 (cutoff date) to 15.02.2013 (final exit order). 1.1 The brief facts of the case are that the appellant is engaged in the manufacture of agrochemicals. On 24-12-2012 the appellant, then 100% EOU, sought permission from the central excise department to convert the 100% EOU into DTA. The department issued 'no dues certificate' on 16.01.2023 basis which Deputy Development Commissioner, Kandla issued 'final e....

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....o export finished goods without any payment of duty. b) He further argued that the finished goods may acquire the character of excisable goods on de-bonding, duty on the same would be payable only when the said goods are cleared from the factory and not before that. He relied on below mentioned decisions to argue that the duty on finished goods is not to be paid on debonding but is to be paid on clearance: (i) Commissioner of Customs and Central Excise, Vadodara v/s Solitaire Machine Tools Pvt. Ltd.- 2003 (152) ELT 384 (Tri-Mum); (ii) Jubilant Life Sciences v. CCE, Meerut II - 2013 (11) TMI 1213 CESTAT New Delhi. c) He also argued that the department has wrongly considered the goods lying in WIP stage as ....

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....artment. e) He submitted that the Learned Commissioner, while confirming the demand, heavily placed reliance on some letter dated 20.01.2017 apparently issued by the Jurisdictional Assistant Commissioner allegedly verifying the correctness of the facts of clearance of goods in export and domestic clearance on payment of duty, however, copy of the same was not provided to the appellant. The documents relied upon in the adjudication order are required to be supplied to the appellant in terms of principles of natural justice as has been held by the Hon'ble Supreme Court in Kothari Filaments v. Commissioner - 2009 (233) E.L.T. 289 (S.C.). Also, the CA certificate which is tangible evidence submitted by the appellant was ignored. He arg....

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....i-finished goods is settled in favour of appellant in terms of decisions relied upon in paragraph 2 above. However, it is seen that although the Learned Commissioner took verification report dated 20.01.2017 from jurisdictional office, the same was not furnished to the appellant. The Hon'ble Supreme Court in Kothari Filaments v. Commissioner - 2009 (233) E.L.T. 289 (S.C.) has held that documents relied upon in the adjudication order are required to be supplied to the appellant in terms of principles of natural justice. We find considerable force in appellant's submission that question of demand of excise duty does not arise if goods are exported which fact can be verified from the CA certificate dated 15.11.2016 which was submitted before t....