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2005 (3) TMI 188 - CESTAT, CHENNAIExports - 100% Export Oriented Unit - EXIM Policy - Manufactures Jumbo Bag (Polypropelene woven sacks) - sales to Domestic Tariff Area (DTA) - duty demand - Penalty - HELD THAT:- It has to be also noted that once the Development Commissioner has accepted these sales as satisfying export obligations, the Customs authorities should not take a contrary view that would render export promotion scheme unworkable. Customs and Central Excise exemptions are dovetailed to export promotion policy. Therefore, the same goods cannot be treated as export by export promotion authority and non-export by another governmental authority. In a three legged race for export promotion by the Customs and Export Promotion authority, the two authorities cannot run in opposite directions. Lack of clarity, if any, should be resolved in a manner facilitating the advancement of the policy and not in a manner that defeats public policy. Thus, we are clear in our mind that duty demand is not sustainable. Once duty demand is not sustainable, there is no occasion for penalty also. The impugned order is therefore, set aside and the appeal is allowed with consequential relief, if any, to the appellant. We make it clear that we are not going into the alternate arguments advanced by the appellants since we are satisfied that the demand is contrary to the relevant legal provisions as discussed.
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