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2015 (12) TMI 1002 - AT - Central Excise100% EOU - Job work - goods were ultimately exported by HLL - allegation that "Instant Coffee Powder" cleared to DTA by wrongly availing the benefit of Notification No.43/2001-CE (NT) dt. 26.6.2001 - Imposition of interest and equivalent penalty under Rule 25 of Central Excise Rules,2002 - Held that:- Appellant have chosen to supply to special category of buyers covered under Rule 19 (2) of the Central Excise Rules. Duty shall be payable only if the clearances are made to general category of buyers. We agree with the submission of the learned Advocate that Rule 19 does not exclude the clearances from 100% EOU from its purview. We find that Notification No. 43/2001-CE dated 26.06.2001 was issued under Rule 19 of Central Excise Rules. As per clause 2(ii) of the notification, exemption is allowed subject to fulfilment of the condition that provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for manufacture of Excisable Goods) Rules, 2001, shall be followed mutatis mutandis. We also find that the goods were cleared under ARE-3 procedure to M/s. Blend Pack and receipt of the goods were accounted for by M/s. Blend Pack and intimation was sent to jurisdictional Commissioner of appellant s unit. Blend Pack is a job worker of Hindustan Level Ltd., (HLL) for further repacking and the goods were ultimately exported by HLL, which is not in dispute. Appellant EOU cleared the goods under Notification No. 43/2001 which was issued under Rule 19 of the Central Excise Rules and the goods were ultimately exported by HLL. Therefore, the question of demanding duty on the instant coffee powder ultimately exported does not arise and the demand is liable to be set aside. Consequently, no penalty is imposable. - Decided in favour of assessee.
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