TaxTMI 
TaxTMI 
2000 (10) TMI 169
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.... EOU and under Section 111 of the Customs Act, 1962, he ordered confiscation of 585 pieces of outer-body quilted garments and gave an option to redeem the same on payment of fine of Rs. 2,50,000/- and imposed penalty under Section 112 of the Customs Act on the EOU and under Section 114 of the Customs Act on the same EOU. Penalties have also been imposed under Section 112 & 114 on the Managing Director Shri T.V. Reddy and on Kum. T. Gayatri Reddy, Director of the EOU company. 2. The appellant company is a 100% EOU set up for the manufacture of readymade garments and it was observed that they had imported capital goods for affecting the intended manufacture of readymade garments duty free for export. It was observed that certain machines wer....
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.... therefore, the allegation that no exports were made is not correct. 4. Heard Shri S. Kannan, learned DR for the Revenue, who relied on the adjudication order and submitted that the condition of Notification No. 13/81-Cus. which provided that 100% of the goods manufactured under EOU should have been exported and in this case that has not taken place. He further submitted that even if the job work done for another unit by the appellant company is considered, it does not mean that total export obligations caused on this 100% EOU have been met, the machines which were removed to Madras for repairs were removed without permission and no permission was taken for doing the job work, therefore, the conditions of the said Notification have been v....
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.... Court decision in the case of Siv Industries Ltd. [2000 (117) E.L.T. 281 (S.C.) = 2000 (37) RLT 583] wherein in para it has been held by the Apex Court. - ".....it also becomes apparent that in view of the EOU scheme as modified from time to time and corresponding amendments to Section 3 of the Act the expression "allowed to be sold in India" in proviso to Section 3(1) of the Act is applicable only to sales made up to 25% of production by 100% EOU in DTA and with the permission of the Development Commissioner...."(underlining supplied). No such material has been brought about in this case that the demands of Central Excise Duty in this case relate to 25% of sales allowed to be sold in DTA by the permission of Development Commissioner. The....