2005 (3) TMI 188

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....icy 1997-2002. Under the impugned order, Central Excise duty demand of about Rs. 1.7 crores has been made in respect of supplies under para 9.10 and penalty of Rs. 25 lakhs imposed on the appellant, upon a finding that such supplies are not exempt from Central excise duty. 2. The contention of the ld. Counsel for the appellant is that under Notification No. 125/84 "all excisable goods produced and manufactured in a 100% EOU" are exempt from the whole of duty of excise. The only exception to this exemption is under the proviso to the Notification and that exemption is in respect of "goods if allowed to be sold in India." The contention of ld. Counsel is that "goods allowed to be sold in India" are the goods allowed by Development Commissi....

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....l export of the goods. (ii) Sale to DTA with permission of the Development Commissioner and (iii) Supplies to DTA in terms of para 9.10. A perusal of paras 9.9 and 9.10 of the Exim Policy clearly brings out that the two disposals are very different in character. Para 9.9(a) is in regard to sale of rejects and para 9(b) is in respect of sales to Domestic Tariff Area. Both the sales are described as "subject to payment of appropriate duties." As against this, supplies to DTA under 9.10 are to parties who are otherwise entitled to import the material. We may read paras : 9.10. The following supplies in DTA shall be counted towards fulfilment of export performance: (a) Supplies effected in DTA in terms of ....