Home Case Index All Cases Customs Customs + AT Customs - 2005 (2) TMI AT This
Issues:
1. Whether denial of benefit of Notification No. 02/95-C.E. on the ground of goods not being identical to exported goods is legal. 2. Whether goods cleared to another EHTP Unit on inter-unit transfer basis are to be treated as export goods. Analysis: 1. The appellants, an Electronic Hardware Technology Park (EHTP) Unit, were denied the benefit of Notification No. 02/95-C.E. for supplying goods to Domestic Tariff Area (DTA) as they were deemed not identical to the exported goods. The Commissioner (Appeals) upheld this decision, stating that goods sold on inter-unit transfer basis to other units cannot be treated as exports under Customs law. However, the appellants argued that the term "identical goods" should be interpreted broadly as per CBEC Circular No. 85/95-Cus., meaning goods that are similar or belong to the same class. They also cited EXIM Policy 1997-2002, asserting that supplies to other units should count towards export performance. The Tribunal agreed with the appellants, holding that the goods supplied to DTA are eligible for the Notification's benefit based on the Board's clarification. The demand for duty on these goods was deemed incorrect, and the appeal was allowed. 2. Regarding goods cleared to another EHTP Unit on inter-unit transfer basis, the Tribunal referenced Para 9.10 of the EXIM Policy, which deems such clearances as exports. Citing a relevant case law, the Tribunal concluded that inter-unit clearances should be considered as exports. Consequently, the demand for duty on goods supplied to DTA by denying the Notification's benefit was deemed incorrect. The Tribunal allowed the appeal with any consequential relief.
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