2003 (4) TMI 141

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....for the appellant explains that each of these notifications was issued exempting duty from goods supplied to export processing zones. These, to take an example notification 5/86 exempts from duty excisable goods when sent to the Noida Export Processing Zone subject to various conditions among which is the condition that the procedure in Chapter X should be followed. The appellant availed of the exemption contained in Notification 217/86 to the parts that it utilised in the manufacture of such machines that it cleared to these export processing zones. Notice issued to it proposed to deny the exemption in respect of these goods on the ground that one of the conditions subject to which the exemption is available, that the manufacture of final ....

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....which we are concerned are issued in terms of Rule 8(1), specifically granting exemption to goods which are sent to the export processing units. In fact applying the test that the Tribunal laid down in Bajaj Tempo Ltd., since the products sent to the 100% export-oriented units were not liable to duty, the exemption contained in the Notification 217/86 will not apply. We are not able to accept the contention that the Counsel for the appellant makes, that there is really no exemption to the goods because they are not specified or that the exemption is not in the name of the manufacture. The notifications are clear enough that the goods which include the air-conditioning machines manufactured by the appellant when sent to the export-oriented u....