Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 54 - CESTAT NEW DELHI100% EOU - manufacture - combed cotton /sliver falling under heading 52.03 of the Central Excise Tariff - Department was of the view that the appellant is required to pay duty on such goods in terms of S.No.4 of N/N. 23/2003 dated 31.3.2003. The appellant resisted the move by arguing that goods cleared in DTA will be liable to payment of Customs duty only when they are subjected to process of manufacture within the meaning of “manufacture” as defined under section 2(f) of the Central Excise Act, 1944 - whetehr the combed cotton/sliver derived from cotton fabric amounts to manufacture - Held that: - The Board’s letter has clarified that EOU scheme covers even those activities which may not be strictly considered as manufacture under section 2(f) of the Central Excise Act. Hence, it has been further clarified that exemption under notification No.1/95-CE will also be applicable to a 100% EOU. In the present case, the process of making cotton sliver from fibre, may not amount to manufacture as per section 2(f). But the appellant has been permitted to produce the same and export. As per the 100% EOU scheme, if such goods are cleared into DTA, Customs duty will be payable with benefit of N/N. 23/2003. Appeal dismissed - decided against appellant.
|