2025 (3) TMI 1059

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....OU schemes of the Foreign Trade Policy (FTP); it is also clearing the said goods into Domestic Tariff Area (DTA) & the said clearances are also permitted by the Govt. of India, Ministry of Commerce (MOC) - the jurisdictional Development Commissioner on payment of appropriate Indirect Taxes in terms of Notification No. 23/2003-CE dated 31.03.2003 as amended, read with Notification No. 01/2011-CE dated 01.03.2011. Accordingly, it appears that the appellant paid the duty in terms of Sl. No. 02 of Notification No.23/2003 (supra); and for payment of Countervailing duty equal to the Central Excise duty payable under Section 3 (1) of the Customs Tariff Act, 1975, the appellant paid the CVD on the effective Rate as per Notification No. 01/ 2011 dat....

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....le 25 of CER 2002 for the period January 2016 to March 2016. Aggrieved by the said OIAs, the present appeals have been filed before us. 7. We have heard Shri S. Venkatachalam, Ld. Advocate for the Appellant and Shri Sanjay Kakkar, Ld. Deputy Commissioner for the Respondent. 8. The issues that crop up for our consideration are (i) whether the appellant being a 100% EOU, is liable to pay Additional Duty of Customs (CVD) at the tariff rate for the DTA clearance or on the effective rate; (ii) whether there is any liability to pay interest and penalty thereon. 9. To avail of this benefit, the a 100% EOU must meet the following conditions : (i) that the unit must be a 100% EOU as defined under Chapter 6 of the Foreign Trade Policy (FTP); (ii) ....

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....d in manufacture of such finished goods. In respect of DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act, 1944, the EOUs would be required to pay Central Excise Duty equal to the aggregate of Duties of Customs in terms of proviso to Section 3(1) of the Central Excise Act, the effective rate of such duties being covered by Notification No. 23/2003 - CE, which has also been amended by Notification No.16/2017 - CE dated 30.06.2017. In other words, the excisable goods are liable to effective excise duty as it existed before GST. 12. In view of the above, it is clear that the EOUs are generally eligible for a concessional rate of excise duty on goods cleared to the DTA, with rates determined based on the e....

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.... that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs or tax on input services has been taken under the provisions of the CENVAT Credit Rules, 2004, wherein the appellant had not availed Cenvat input Credits for the manufactured of Fly Ash which in question cleared under DTA, as such the appellants have fulfilled the conditions to avail the benefits of the notification. 18. Moreover, it is not disputed by the Revenue insofar as the approvals / permission extended to the appellant by the Jurisdictional Development Commissioners vide permission Letter F.No. A/2004-07/047/EOU-T/5145 dated 22.11.2011 (para-1 of the O-I-O dt. 31.12.2014) for DTA clearance on payment of duty in terms o....