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2015 (10) TMI 1135 - AT - Central ExciseDuty demand - Clearance of goods without payment of duty - Rejection of request on ground that in terms of the provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, they were required to execute a fresh bond in terms of Rule 3 of these rules backed by a bank guarantee for the sufficient amount to cover the duty involved on the goods being procured free of duty, but they have not furnished such bond or bank guarantee. - Held that:- In terms of Notification issued under Rule 19 for duty free procurement of the goods for use in the manufacture of the goods for export the manufacturer is required to follow the procedure prescribed under the 2001 Rules and in accordance with Rule 3 of these Rules, he is required to furnish a bond backed by security in form bank guarantee to cover the duty involved on the goods procured free of duty. However in terms of the Board’s circular the condition of furnishing security has been waived in the case of certain category of exporters and one of them is star trading house. The appellant have produced a certificate issued by Ministry of Commerce certifying their status as Star trading house. Hence in view of the Board’s circular mentioned above, they would be required to furnish only the bond as prescribed in Rule 3 of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 and this bond need not be backed by the bank guarantee. - Impugned order is set aside - Decided in favour of assessee.
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