2014 (3) TMI 991 - SCH - Customs

Denial of EOU Benefit - Not. No. 2/95-C.E. - DTA clearances made by it during the material period were in excess of 50% of the FOB value of the physical exports - Supreme Court after hearing the parties and condoning the delay dimissed the appeal filed by the Revenue against the decision of Tribunal wherein tribunal held that EOU cannot be denied the benefit of Not. No. 2/95-C.E. as the appellant was allowed to sell the entire production of shrimp feed within the country as the DGFT authorities have considered the DTA clearances as export clearances and issued EODC to appellant. A legitimate benefit extended under a Notification cannot be denied to the EOU for no fault of theirs. We also find considerable merit in the submissions made by the assessee relying on various judicial authorities. In the circumstances sale of shrimp feed by the EOU in DTA should be treated as deemed exports and the impugned clearances entitled to the benefit of the Not. No. 2/95-C.E. allowed to it.

Summary

The Supreme Court dismissed a civil appeal after condoning the delay in filing the appeal. The judgment was made by Justices Anil R. Dave and Shiva Kirti Singh.