TaxTMI 
TaxTMI 
2025 (9) TMI 1065
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....y to USA, UK, Yemen, Dubai etc and also sell the same in the domestic market, that in the course of the same business, they have imported Multi Silicon Solar Cell (Photovoltaic solar Cell) CTH 85414011 and filed Bills of Entry [B/E] No.7425274 dated 30.07 2018 and 7929763 dated 06.09.2018 through their CHA at prescribed 'Nil' rate of BCD by availing the benefit of S. No. 23 of Notification No. 24/2005-Cus dated 01.03.2005 and discharged their liability of IGST @ 5%, that since there was no safeguard duty applicable on the import of raw material by EOU, they filed Bills of Entry without payment of any safeguard duty which was duly assessed and cleared by the Department @ 0% of Safeguard duty. 3. Sometime in March, 2019 on scrutiny of the Bill of Entry, the Special Investigation and Intelligence Branch observed that the appellant had not paid the Safeguard duty @ 25% imposed vide notification No. 1/2018-(SG) dated 30.07.2018, therefore, issued summons and recorded statement of their Director Sh. Ashwani Sehgal on 18.04.2019 wherein he stated that they are 100% EOU; that goods were imported on 100% EOU: that correct description and quantity was described in the Bills of Entry, that....
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....rned Counsel has also challenged the imposition of penalty under Section 112(a) of the Act. 8. Per contra, Shri S.K. Ray representing the Revenue submitted that the Notification No.1/2018-CUS dated 30.07.2018 levying safeguard duty is not applicable to the importers of the goods from the countries which are notified as developing countries under Notification No.19/2016-CUS (NT) dated 05.02.2016. The list provided in the Notification No.19/2016-CUS (NT) does not specify Taiwan as one of the country eligible for exemption from levy of safeguard duty and hence, the appellant is liable to pay the same. 9. Learned Authorised Representative for the Revenue also submitted that so far as the provisions contained in Section 8B of CTA and notification No. 52/2003-Cus dated 31.03.2003 are concerned, the fact remains that the same will be applicable in those cases where the B/E are filed under EOU category, In the instant case, it has been placed on record that B/E have been filed under Non-EOU category, a fact which stands corroborated from the statement dated 18.04.2019 tendered voluntarily by their Director Shri Ashwani Sehgal and accordingly, he prayed that the appeal be dismissed. ....
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....rted by a hundred per cent. export-oriented undertaking or a unit in a special economic zone unless, (i) specifically made applicable in such notifications or such impositions, as the case may be; or (ii) the article imported is either cleared as such into the domestic tariff area or used in the manufacture of any goods that are cleared into the domestic tariff area and in such cases safeguard duty shall be levied on that portion of the article so cleared or so used as was leviable when it was imported into India. Explanation: For the purposes of this section, the expressions "hundred per cent. export-oriented undertaking", and "special economic zone" shall have the meanings assigned to them in Explanation 2 to sub-section (1) of section 3 of Central Excise Act, 1944 (1 of 1944)." 11. The entire scheme of imposing safeguard duty has been provided under the various clauses of section 8B. Clause (1) empowers the Central Government to impose safeguard duty by issuing notification on being satisfied that any article imported in such increased quantity which may cause or threaten to cause serious injury to domestic industry. The first proviso says that no s....
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....t applicable in case of 100% EOU by virtue of the main substantive subsection 2A of section 8B. 12. We find that the Certificate dated 29.09.2015 issued by Government of India approved the appellant as 100% Export Oriented Unit set-up in Noida Special Economic Zone, entitling the unit to top priority treatment from all concerned Central and State Government Departments, and other organisations in all matters relating to the project. The Revenue has not disputed the status of the appellant as 100% EOU. The appellant continued to be 100% EOU till the final exit order dated 23.11.2023, allowing the appellant to exit from the 100% EOU scheme and, therefore, the green card issued to the unit was cancelled. Thus, it is an admitted position that the appellant was 100% EOU at the relevant time when the goods were cleared. In that view of the matter, the appellant is entitled to special treatment, whereby no safeguard duty can be imposed on them without any reference to the notifications issued under the provisions of Section 8B. Only two conditions under which safeguard duty could have been imposed on 100% EOU have been specified in the sub-section itself and it is not the case of the R....