TMI Blog2019 (10) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... petitive bidding is also undisputed. There is no doubt that such supplies do result in saving of foreign exchange, and for that reason, are extended the benefits of deemed export without having to leave the shores of India. However, these are prescriptions under the Export Import Policy and entitlements are restricted to the incentives enumerated therein. It is also not the case of the assessee that the central excise authorities or customs authorities are seeking to deny them the benefit granted at the time of import. In terms of Export Import Policy, the eligibility of inclusion of such clearances in the prescribed export obligation automatically derives for them the benefit of import duty exemption. The clearance have been effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994 and 2nd April 1994 to Superintendent Engineer, Irrigation Department, Patna for execution of Bihar Public Tubewell Project which was awarded pursuant to international competitive bidding process. Appellant is a 100% export oriented unit operating against Letter of Permission (LoP) issued by the jurisdictional Development Commissioner and the impugned goods were proceeded against on the premise that these goods were being cleared into the domestic tariff area on which duty liability arises under section 3 of Central Excise Act, 1944, in show cause notice issued on 12th May 1994. 2. According to Learned Counsel for appellant, approval of jurisdictional Development Commissioner had been obtained on 15 th October 1993 bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 26th May 1984. Placing reliance on the decision of the Hon'ble Supreme Court in Suchitra Components Ltd v. Commissioner of Central Excise, Guntur [2007 (78) RLT 463 (SC)] to the effect that any circular that confer beneficial effect should be applied retrospectively, entitlement of exemption in circular no. 618/9/2002-CX dated 13th February 2002 of Central Board of Excise Customs was claimed. Reliance is also placed on the overruling of the Larger Bench of the Tribunal in Jaipur Golden Transport Co Ltd v. Commissioner of Central Excise, Surat [2007 (215) ELT 503 (Tri-LB)], by the Hon'ble Supreme Court in Commissioner of Central Excise, Visakhapatnam- II v. NCC Blue Water Products Ltd [2010 (258) ELT 161 (SC) ] upholding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Puducherry [2016 (340) ELT 594 (Tri-Chennai)] , of the Hon'ble High Court of Karnataka in Commissioner of Customs, Bangalore v. Leela Scottish Lace Ltd [2011 (268) ELT 185 (Kar.) ] and of the Hon'ble Supreme Court in Commissioner of Central Excise v. Mewar Bartan Nirman Udyog [2008 (231) ELT 27 (SC)] ; in the last, attention was drawn to the mandate of strict interpretation as laid down therein. 5. Having heard the rival submissions at length, the facts that remain undisputed are that the appellant is a 100% export oriented unit entitled to duty-free clearance of raw materials, consumables and capital goods required for manufacture of the permitted products intended for export. The supply of impugned goods to a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crystallise when cleared for export. By any description and, notwithstanding the communications emanating from the jurisdictional Development Commissioner and Ministry of Commerce, the clearance cannot be designated as anything other than sale in India. Thereby the provisions of Section 3 of Central Excise Act, 1944 with appropriate duty liability will get triggered. 7. In re Sri Varalakshmi Jute Twine Mills P Ltd, the issue was limited to the chargeability under section 3(1) of Central Excise Act, 1944 vis- -vis the proviso, on goods clandestinely removed which would apply only when the permission of the Development Commissioner was not obtained. In re Suchitra Components Ltd, the claim of the appellant for applicability of circul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be, is not a permissible substitution; the former is contingent upon a letter of permission contemplated in the scheme while the latter is not so restricted. 9. The clearance have been effected to the domestic tariff area with permission accorded by the jurisdictional Development Commissioner in accordance with the prescription in the Export Import Policy. The benefits of various concessions available therein would apply if within the quantitative prescriptions in the Export Import Policy and the relevant notification. Furthermore, the Learned Counsel for the appellant has furnished a worksheet in terms of which the duty liability is computed at ₹ 99,00,973.50. The impugned order has not examined the applicability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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