TMI Blog2014 (5) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... ance and was not to a 100% EOU, the duty could not have been demanded - Other than stating that no permission was taken, there is no contradiction of the claim that the unit to whom prawn and prawn seeds were cleared by assessee was a 100% EOU - Thus, Commissioner was right in not demanding the duty on domestic clearances even though he did not make these observations and he did not record a finding on the same. Duty demand on raw materials and capital goods imported and indigenously procured – Held that:- The concerned DC in Order-in-Original No. 8/EOU/ADJLIO6/VEPZ condoned the shortfall and accordingly, upheld the fulfillment of the conditions of LOP during the period from 1-10-1994 to 31-3-2000 - Therefore, the Development Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on 17-6-1992 from the Development Commissioner, the unit was required to produce 535 MTs of prawn and 41 millions of prawn seeds for a period of 10 years with a minimum value addition of 58%. The appellant was permitted to import capital goods worth Rs. 55.45 lakhs. The appellant imported capital goods, consumables and raw materials during the period from 1994-95 to 1999-2000 and the customs duty worked to Rs. 12,29,093/- and Rs. 12,57,500/- respectively. Further the appellant also procured indigenous capital goods and raw materials on which duty payable worked out to Rs. 7,07,333/- and Rs. 1,56,800/- respectively. From the information submitted by the appellants, it was found that the appellants cleared 138.07 MTs of prawn valued at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave, in turn, exported the same and further the shortfall in fulfilment of export obligation has been condoned by the Development Commissioner and therefore duty on capital goods and indigenous raw material was not liable to be paid. 5. We have considered the submissions. In the Circular No. 13/95-Cus., dated 15-2-1995, the Government had clarified that 100% EOUs are free to transfer of goods imported or manufactured to another 100% EOU for the purpose of use of the goods or for export or further manufacture. Therefore, appellants did not need any permission to transfer their goods to another 100% EOU and unless it is shown that the clearances made by the appellants to other unit was DTA clearance and was not to a 100% EOU, the duty coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his regard, it is seen that one of the conditions of the exemption notification is that the importer exports out of India 100% or suck other percentage, as mat) be fixed by the said Board, or articles manufactured wholly or partly from the goods for the period stipulated by the Board or such extended period as may be specified by the said Board. It is thus, clear that if the competent authority namely the Board of Approval or the Development Commissioner concerned determines that the unit bas failed to export the fixed percentage of articles for the specified period, then in such case it may be held that the conditions of the exemption notification has been violated. At this stage it will be open for the Department to issue a show cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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