TaxTMI 
TaxTMI 
2005 (7) TMI 245
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....for oil & gas exploration and hold the necessary Approvals as EOU & licencees under the Custom Warehousing provisions (section 58 and section 65). They availed the benefit of notification 1/95-C.E. as amended & 13/81-Cus. in respect of Indian & foreign raw materials, procured duty free, required for manufacture of the final products. (b) Some time in 1996, to cater the buyers in the domestic market as well as for carrying out repairs in respect of the drilling pipes received, they started the Domestic Tariff Unit (herein after referred to as DSU for short) adjacent to the EOU with its own set of Capital Goods manufacturing using locally procured duty paid material. 1.3 Pursuant to specific int....
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....72 of the Customs Act. (iv) The Customs duty amounting to Rs. 3,02,51,893/- as detailed in Annexure D to SCN during the period from 1995-1996 foregone on the machinery allowed to be imported duty free should not be demanded and recovered from them for contravention of provisions of the Customs Notification No. 13/81-Cus., dated 9-2-1981 as amended, in force during the material time, as under the proviso of sub-section (1) of Section 28 of the Customs Act, 1962 read with Section 72 of the Customs Act, 1962. (v) The C.E. Duty of Rs. 6,01,972/- as detailed in Annexure E to SCN during the period from 1995-1996, foregone on the machinery allowed to be procured in....
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....x. Rules 1944 for abetting to assessee in evasion of the C. Ex. duty & the Jt. Managing Director, was asked to show cause why penalty under Rule 209A should not be imposed on him. 1.4 After hearing the appellants, the impugned order came to be passed confirming the Central Excise Duty of Rs. 85,02,349/- & Rs. 38,99,756/- & Rs. 6,9,972/- (sic) & Rs. 5,59,43,039/- as per details in Annexure A & B, E & F to the notice confirmation of Central duty of Rs. 1,49,70,155/- as detailed in Annexure C & Rs. 3,02,51,893/- as detailed in Annexure D along with penalty along with interest under section 11AB. A penalty of Rs. 10 lakhs was imposed on the Jt. Managing Director under Rule 209A. Hence these appeals. 2.1 After hearing both sides and ....
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....has totally ignored this aspect of settled law. We find no reason to call for and deny the exemption & raise duly demands under Section 28(1) read with Section 72 of the Customs Act 1962 as per Annexure D to the notice as confirmed by the Commissioner. (b) The demands in Annexure E, are on machinery procured indigenously in term of said Notification 1/95-C.E. & installed in EOU; it cannot be upheld for the same reasons as for imported capital goods found herein above. (c) As regards the duty demand of Rs. 5,59,43,039/- as Annexure F demanded on goods cleared under the provisions of para 9.10(b) of the Exim Policy, as supplies from ah EOU during the per....