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2015 (2) TMI 80 - CESTAT NEW DELHI100% EOU or free trade zone - DTA Clearances without permission - there was no manufacturing operation at all carried out by the appellant - Held that:- CPT and PMC were removed from DTA without carrying out any manufacture activity because the CPT and cabinet imported were not mentioned to be any raw-material in the Bill of Entry as well as invoices of the exporter. Degaussing does not amount to manufacture because it does not change the character and nature of the input. CPT itself were imported. Those were capable of performing their own function without undergoing any processing. - Appellant did not get any permission for carrying out degaussing and alignment of CRT from the appropriate authority. Similarly, plastic cabinets were imported without indicating any manufacturing process to be carried thereon in absence of entry in LOP in that regard. Similarly spray painting does not amount to manufacture. Those were neither meant for export nor independently manufactured but used as accessories. As per LOP, CPT and moulded cabinets were raw-materials and those were not subjected to a manufacturing process for which those are not included in the list of items to be manufactured while LOP was granted. Therefore, CPT and PMT cleared in DTA were mere imported materials and components only. The appellant also did not inform to the Department about carrying out of any activity to be called ‘degaussing’ and ‘spray painting’ as manufacture. The terminology ‘degaussing’ and alignment of CRT and spray painting of plastic moulded cabinets were only nomenclature given by appellant to give an impression that certain processes were carried out on such goods imported and sold in the DTA. There was failure to fulfil the conditions of the Notification 52/2003-Cus., dated 31/03/2003. The duty free goods not being used in manufacture violation of condition of export calls for recovery of the customs duty foregone by the Department. - The citations relied on by the appellant are not profitable to it when there was no manufacturing of CPT and cabinet activity carried out by them. Degaussing and spray painting is not known in trade parlance as manufacturing activity. When the goods imported were declared to be used in manufacturing process, but not so used, the duty foregone on import thereof is recoverable. The goods sold in DTA were the imported CPT and PMC misconceiving that manufacturing was done. Thus, the benefit of Notification claimed is not tenable and plea of excise duty is immaterial. Customs duty is recoverable. - Decided against assessee.
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