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2019 (2) TMI 1296 - CESTAT CHENNAI100% EOU - Valuation - turbo charger components, machined castings, tools / jigs / fixtures - similar goods or not - bearing housing and turbine wheel assembly and components - concessional rate of duty under N/N. 23/2003-CE dated 31.3.2003 - DTA clearance - Held that:- On perusal of N/N. 23/2003-CE, it is found that there is no such conditionality that the goods are to be produced or manufactured wholly from the raw materials produced or manufactured in India. In fact, such requirement is found only in condition 3 which in any case is not sought to be availed by the appellant. This being so, this ground for denial of the benefit is not sustainable. Requirement of taking prior permission from jurisdictional Customs / Central Excise authority for DTA sale of goods - Circular 12/2005-Cus. dated 4.3.2005 - Held that:- The Circular states that EOUs are not required to take permission from the jurisdictional customs/central excise authority for DTA sale of goods. The units may sell the goods on payment of duty as per the conditions and entitlements as specified in Foreign Trade Policy - the above CBEC clarification will fully apply and hence the denial of benefit will also not succeed. Denial of notification benefit also denied on the ground that the goods cleared in DTA are not “similar” to the goods exported by the appellant - Held that:- There is no doubt that the appellant had exported bearing housing whereas the goods to be cleared into DTA seeking benefit of Notification 23/2003 was turbo wheel assembly. While, the adjudicating authority has been at pains to cite the difference in characteristics and function of these two items, the fact remains that both of them are components of turbo charger and hence will surely fall under the broad banded term ‘turbo charger components’ which is the export product as per the EOU/green card issued to the appellant by the Development Commissioner. Hence when the permission granted to appellant has not listed any specific components of a turbo charger but instead has only indicated export product as 12,50,000 nos. of turbo charger component which was even subsequently enhanced to 32,00,000 nos. of turbo charger components, the appellant cannot then be said to have caused a breach of the conditions. The impugned order in this regard cannot then sustain - appeal allowed - decided in favor of appellant.
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