TaxTMI 
TaxTMI 
2026 (4) TMI 366
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....inverters, Battery Accessories, etc. During the Audit, it was noticed that the appellant was clearing goods on stock transfers to their own units located in the Domestic Tariff Area (DTA). The Department observing that on these clearances the appellant was liable to pay Special Additional Duty (SAD), issued show-cause notice and the same was confirmed by the Commissioner in the impugned order on the ground that they were not eligible for the benefit of exemption Notification No.23/2003-CE dated 31.03.2003. Accordingly invoking the extended period of limitation, an amount of Rs.2,68,91,616/- was confirmed along with interest. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Counsel submits that the appellant h....
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....lant wherein VAT was not liable to be paid. This issue is no longer res integra in as much as the Tribunal in the case of M/s. Micro Links Vs. CCE & ST Daman (supra), in similar set of facts, has observed as follows: "7. At the outset, it is to be recorded that the facts are not much in dispute inasmuch as the entire duty liability as has been confirmed is only in respect of clearances made by the appellant (100% EOU) to their sister concern in DTA. It is also undisputed that the goods which are cleared from EOU, independent buyers in DTA sales tax/VAT is levied as per the provisions of the State laws and are being discharged by the appellant. It is also undisputed that the same products are cleared by the appellant to independent ....
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.... to DTA are exempted. It is an admitted fact that whenever there is an inter unit transfer, it is not sales transacations and hence the sales tax/CST/VAT may not get attracted does not mean ipso facto, it is an exemption granted by the State Government. In the absence of any notification granting exemption for specified products by the State Government from levy of sales tax on the finished goods cleared from 100% EOU, it would be incorrect to hold that the goods were exempted from sales tax, more so when the appellant has discharged the sales tax on the same products which were cleared to independent buyers. Secondly, we find that the lower authority seems to have been guided by the argument that inter unit clearance are not taxed by the S....
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..... 23/2003-C.E. as amended is applicable 'Qua Goods' and exemption is across the Board and is applicable to all such goods which are not exempted by the State Government by issue of notification or an order from payment of sales tax/CST/VAT. We also find that large emphasis placed upon, by the lower authorities as well as departmental representative on the decision of the Larger Bench in the case of Moser Baer (I) Ltd. (supra). In our view, the reliance on the ratio seems to be erroneous since the question which was raised before the Larger Bench was not the question that is before the Bench in the proceedings in these appeals. The Larger Bench was specifically referring to the issue which was in respect of a 100% EOU availing sales tax ....