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2019 (7) TMI 1799 - CESTAT KOLKATA100% EOU - eligibilty for DTA sale - maximum permissible limit for export - It is the case of the appellant department that the respondent assessee was eligible for DTA sale up to a maximum limit of 50% of the FOB value of their export - N/N. 23/2003-CE dated 31.03.2003 - HELD THAT:- It is observed that for yarn of jute and goods of jute condition No.10 is applicable. Condition No.10 says “if the goods are manufactured wholly from indigenous raw materials”. Correspondences available on record show that permission of DTA clearances was given under para 6.8 (k) of FTP 2004-2009 which required them to restrict these clearances up to 50% of the FOB value of their export. Two letters dated 16/11/06 and 27/06/07 of Development Commissioner addressed to the noticees are available on case record which show that DTA clearance was given in term of 6-8 (K) - The noticee however dispute this allegation on the ground that the condition envisaged in para 6.8(k) was not at all applicable to them in as much their claim to make DTA clearance of jute yarn was covered under another condition under para 6.8(h) which did not require them to limit their DTA clearance but instead required achievement of positive NFE. In support of their claim they have produced copies of their letters dated 10/05/2007, 02/07/2007, 04/0707 and 30/0707 addressed to development commissioner claiming thatsince they had achieved positive NFE they would be covered under para 6.8 (h). I find that copies of some of these letters are also marked to department. It is found that department too accepts that para 6.18(e) condition has been fulfilled implying that the notices had achieved positive NFE and as such their claim that their DTA clearances were fully consistent and compliant with the provisions contained in para 6.8 (h) is liable to be accepted - exemption under notification No.23/03 dated 01/03/03 can be denied only if it shown that they have violated FPT conditions. The, notice have however proved that they have complied with its conditions and were not required to restrict their DTA clearances vis a vis their export. There is no allegation in the notice that for manufacturing jute yarn they used as imported raw materials. There are no ambiguity in the impugned order - appeal dismissed - decided against Revenue.
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