TaxTMI 
TaxTMI 
2026 (1) TMI 209
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....fore us in this appeal of M/s Responsive Industries Ltd, as well as in that of the individuals as responsible functionaries of the appellant-company, against order [order-in-original no. 45/AC/COMMR/Th-II/2014 dated 22nd December 2014] of Commissioner of Central Excise, Thane-II fastening duty liability of Rs. 1,92,93,952 under section 11A of Central Excise Act, 1944, along with applicable interest under section 11AA of Central Excise Act, 1944, and imposing penalty of like amount under section 11AC of Central Excise Act, 1944 besides imposing penalty of Rs. 20,00,000 each on the two individual-appellants under rule 26 of Central Excise Rules, 2002. 2. The appellant, an 'export oriented unit (EOU)', holding 'letter of permission (LoP)' f....
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....able to the notification 23/ 2003-CE dated 31.03.2003 was not available to the noticee, since, they had procured raw materials from an EOU, who had imported the goods into India and had availed deemed export benefits. 11. The demand made in the notice would succeed on this shot judicial exposition. This is also a case where the reading of the condition of eligibility, which being an exemption, has to be strictly interpreted necessarily, clearly showed that the raw materials were not produced of manufactured in India.......' in the impugned order. 4. Before proceeding to evaluate the submissions made by the two sides, the context of the dispute would require us to examine the concept of 'deemed exporter'; it must be made abund....
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.... placed and resolved. He submitted that several decisions of the Tribunal, including that relied upon in the impugned order and in Sarla Performance Fibres Ltd v. Commissioner of Central Excise & Customs [2009 (233) ELT 43 (Bom)], in Kumar Arch Tech Pvt Ltd v. Commissioner of Central Excise, Jaipur-II [2013 (290) ELT 372 (Tri-LB)] and in Godrej Industries Ltd v. Commissioner of Central Excise & Service Tax, Surat [2016 (338) ELT 435 (Tri-Ahmd)], had held that the appellant was not liable to pay cess many times over. It was also contended that the impugned order had travelled beyond the scope of the notice and in urging that the impugned order could be set aside on that very ground, he relied upon the decision of the Hon'ble Supreme Court in....
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.... Ltd; an 'export oriented unit (EOU)' may procure by import or from indigenous sources and raw materials from both sources are relieved of respective duty burden - the imported goods in the hands of the 'export oriented unit (EOU)' and indigenously procured goods in the hands of the domestic supplier - and the clearance of finished goods, if not for export, is exempted, as per serial no. 3 of table in the said notification, to the extent of '...excess of amount equal to aggregate duties of excise leviable under Section 3 of the Central Excise Act...on like goods produced or manufactured in India other than in an export oriented unit, if sold in India' subject to compliance with condition of the goods being '(i) .....pro....
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....would have to include the value thereof for enhanced fulfilment of export obligation. That is also not in evidence here. Hence, the foundation of denial of the exemption in excess of excise duty otherwise chargeable on the finished goods is without any evidence whatsoever. 9. The adjudicating authority has contrived, from an observation contextual to domestic clearance of finished goods by 'export oriented unit (EOU)', to fasten the characteristic of 'non-indigenous' on goods supplied, without benefit of said notification, by a domestic entity and permitted clearance, as 'raw material' to the appellant who was entitled to the benefit of duty free in relevant notification under section 5A of Central Excise Act, 1944. 10. For the purpos....
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....rials' is supply by unit in 'domestic tariff area (DTA)' to 'export oriented unit (EOU)' or, at best, by 'export oriented unit (EOU)' to 'export oriented unit (EOU)' which, anyway, is unsubstantiated from the records. 12. Even the other observation in re Sarla Performance Fibers Ltd that '75. ....In the case of 100% EOUs, when goods are cleared to 100% EOU it is deemed export; when a 100% EOU imports goods, no customs duty is charged because a 100% EOU is treated as a customs bonded warehouse; when a 100% EOU clears the raw materials imported, it is required to pay the customs duties if the clearance is to domestic tariff area .....The benefits or the liabilities will have to be calculated as per provisions of the relevant and t....