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2014 (7) TMI 111 - AT - Central Excise100% EOU - DTA clearance of cut flowers - Exemption under Notification 126/94-Cus dated 03/06/1994 - Held that:- Notification 126/94 grants exemption to inputs imported for the production, manufacture or packaging of articles for export purposes. One of the conditions stipulated for availing the benefit of exemption is that if the articles which are manufactured/produced are not excisable and are not exported, then customs duty can be demanded on the imported inputs used for the purpose of production and manufacture of such articles in an amount equal to the customs duty leviable on such articles as if they are imported as such. In other words the duty demand is on the imported inputs and not on the articles which have been produced and such duty is demandable at the time of clearance of the non-excisable articles into DTA. Notification does not permit demand of duty on the articles manufactured/produced in Indian when cleared into DTA. In the present case, the show cause notice proposes to demand excise duty on cut-flowers which are not excisable. Therefore, the provisions of Notification 126/94 has no application - Decision in the of Cosco Blossoms Pvt. Ltd. vs. Commissioner of Customs [2003 (12) TMI 114 - CESTAT, NEW DELHI] followed - goods produced in an EoU cannot be treated as imported goods and only excise duty under Section 3 of the Central Excise Act is payable and customs duty is not demandable - Decided against Revenue.
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