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2005 (3) TMI 174 - CESTAT, NEW DELHIDemand - 100% Export Oriented Scheme - setting up an industrial unit for the salting and roasting of cashew nuts and cryogenic grinding of spices - imports capital goods - extension of validity of the licence - HELD THAT:- In the present case, taking into account the difficulties pointed out by the appellant, the Assistant Development Commissioner, NOIDA extended the validity of the LOP till 31-3-2008. In such a situation, the Revenue authorities are also required to grant permission to the appellant for the harmonious functioning of the EOU Scheme. Taking of a restricted view by the Revenue authorities would make the scheme unworkable. Such a view also is not warranted as there is no material showing that the appellant had diverted any of the imported goods for any purpose other than use in the EOU premises. The appellant has also a strong case except for two machines, other machines remain installed and the duty demand in the case of installed machines is contrary legal provision The assessee had applied for extension of validity of the licence which was not considered in view of the fact that the Building/Plant & machinery were not got insured by the assessee and the assessee was asked to do the needful & it was only on 22-5-2000, when the assessee submitted a copy of insurance cover regarding insurance of the Building, plant & machinery and accordingly validity of licence of the assessee has been extended upto 31-12-2000 by the Assistant Commissioner, Central Excise Division, Bhiwadi. In view of the above it is held that since validity of assessee's licence and LOP has already been extended uptill 31-12-2000, the show cause notice is pre-mature and at this stage no duty can be demanded from the assessee. Thus, the impugned order is set aside and the appeal is allowed with consequential relief, if any, to the appellant.
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