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2015 (4) TMI 160 - AT - Central Excise100% EOU - Denial of exemption claim - DTA Clearances - Whether the scrap generated in the appellant's unit and cleared into DTA is eligible for basic customs duty exemption under notification no.21/2002-Cus - Held that:- exemption notification unconditionally exempts the "melting scrap". According to the department, the scrap being cleared into DTA is not melting scrap. In our prima facie view, the stand of the department is incorrect and without any basis, as the only use of scrap is for re-melting. In view of this, the impugned order denying the basic customs duty exemption under notification no.21/2002-Cus (Sl.No.332) for the purpose of calculation of duty payable in respect of the DTA clearances of scrap in terms to proviso to Section 3(1) of the Central Excise Act, 1944 is not correct. As regards the denial of exemption notification no.23/03-Cus [sic:- notification no.23/03 CE] the only ground adopted by the department is that the scrap generation norms have not been provided but this stand also prima facie is not correct in view of the letter dated 26.05.2010 of the DGFT addressed to the appellant company. - impugned order is not correct and as such, the appellant have strong prima facie case in their favour. - The requirement of pre-deposit of duty demand, interest and penalty by the appellant company and the requirement of pre-deposit of penalty by Shri Praveen Garg, Ex Finance Head is waived for hearing of their appeals and recovery thereof is stayed - Stay granted.
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