2005 (2) TMI 327

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.... is a 100% E.O.U. Due to certain circumstances they have not fulfilled the export obligation after availing duty free procurement of capital goods and other raw materials. Moreover, they cleared the goods manufactured by them to the Domestic Tariff Area (DTA) without payment of duty. The Revenue proceeded against the appellants. The adjudicating authority demanded the duty of Rs. 8,61,280/- on the....

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....liability of the capital goods in view of the non-fulfilment of the conditions of Notification No. 123/91-C.E. dated 2-6-81. The appellants are aggrieved over the following decisions :- (i)      Since they had not used any imported machinery and raw material and bonafidely cleared the goods to the Domestic Tariff Area (DTA), the duty on the cleared goods should be calcu....

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....ed SDR appeared for the Revenue. 4. The learned Advocate submitted that the appellants were not in a position to fulfil the export obligation in view of the various problems faced by them. The capital goods were obtained indigenously under CT-3 form without payment of duty. Once they are found that they would not be able to operate under the scheme, they applied to Government of India for withd....

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.... Further he relied on the following case laws holding that the goods cleared to DTA without permission from the Development Commissioner are chargeable to duty under Section 3(1) of the Central Excise Act :- (i)      Treasure Tech Electronics Ltd. v. CCE - 2003 (153) E.L.T. 71 (T. - Del.) (ii)     Bhagat Exports v. C. Cus. - 2003 (161) E.L.T. 383....