TaxTMI 
TaxTMI 
2001 (6) TMI 90
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....8-2-1999, to the respondents. 2.The facts giving rise to this appeal may briefly be stated as under; 3.The respondents an 100% EOU, were engaged in the manufacture of recycled LDPE plastic granules and recycled LDPE plastic agglomerates falling under sub-heading 3901.10 of the CETA. They had been clearing the goods manufactured by them into Domestic Tariff Area (DTA) against payment in foreign exchange in terms of para 9.10 (6) of EXIM Policy 1997-2002. The said clearances were effected by them without payment of additional duty of Customs (CVD) by claiming exemption therefrom in terms of Notification Nos. 5/98-C.E., dated 2-6-1998 and 5/99-C.E., dated 28-2-1999. But they were in fact not eligible to avail the benefit of these notific....
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....e respondents in appeal before the Commissioner (Appeals) who through the impugned order reversed the same. The Revenue has come up in appeal. 5.The Learned SDR has contended that the exemption contained in the Notification Nos. 5/98-C.E. and 5/99-C.E. was not available to the respondents being an 100% EOU and that the goods manufactured by them could not be said to have been manufactured in India and as such were liable to pay additional duty of Customs in terms of proviso to Section 3(1) read with Section 12 of the Customs Act. Therefore, the impugned order of the Commissioner (Appeals) deserves to be set aside. 6.On the other hand, the learned Counsel for the respondents has mainly reiterated the correctness of the impugned order o....
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....ed in the said notifications, the Deputy Commissioner recorded the findings against them, by observing that EOU is a distinct entity which cannot be equated with a domestic/indigenous unit on account of several notable features like extension of duty, exemption to raw material, capital goods, consumables and host of other items. He further observed that 100% EOU is liable to pay Central Excise Duty in respect of excisable goods and allowed to be sold in India, in terms of proviso to Section 3 which stipulates liability to pay aggregate of the duties of customs in terms of Section 12 of the Customs Act, and as such the goods manufactured or produced in a 100% EOU when allowed to be sold in India, are to be deemed to had been imported into In....
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....ircular No. 38/2000-Cus., dated 10-5-2000. In para 3 of that Circular, the Board inter alia stated as under :- "In so far as levy of additional duty of customs (CVD) on imports of reprocessed plastic materials viz., plastic granules/agglomerates, is concerned, condition (1) above will not be satisfied because the reprocessing has not been done in India. Thus, in case of normal imports of reprocessed plastic materials, the importers/domestic manufacturers are liable to pay, among other duties, additional duty of customs (CVD). It, therefore, follows that no CVD exemption will be available when reprocessed plastic materials are cleared in Domestic Tariff Area (DTA) by EOUs and EPZ units. In other words the plastic processor EOUs/EPZ units ....