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2016 (3) TMI 380 - AT - Central Excise100% EOU - sale of goods in Domestic Tariff Area (DTA) without following the guidelines - Customs duty is chargeable on fresh cut flowers grown and cleared by the appellant in DTA in terms of Notification No. 126/94-Cus., dated 3-6-1994 % or otherwise - Held that:- As per this provisions a clear distinction between excisable goods and non-excisable goods were made. When excisable goods are manufactured then the excise duty in terms of Section 3 of Central Excises and Salt Act, 1944 are required to be paid which is otherwise equal to the Customs duty leviable on such article. In case of non-excisable goods, no excise duty or Customs duty on such non-excisable goods are required to be paid. Only customs duty equal to amount leviable on imported goods used for production, manufacture or packaging of such article are required to be paid. In the present case the final product is Cut Flowers which is sold in DTA market. The said Cut Flowers are not excisable, firstly there is no question of any payment of excise duty or customs duty on Cut Flowers. If at all any duty liability is there it should be on the imported goods which is used for production, manufacture or packaging of cut flowers. In the instant case, it is not case of Revenue that the appellant have used any imported material for growing or packaging of cut flowers. Therefore there is no question of any demand of customs duty. In any case, the demand was confirmed by the original adjudicating authority in terms of Notification No. 126/94-Cus. on the cut flowers as discussed above. Cut flower being non-excisable goods, neither any excise duty nor any customs duty is required to be paid. We are of the considered view that demand of duty on the Cut Flowers grown/produced in India and cleared in DTA is not chargeable, therefore the impugned order is sustained as cut flowers cleared by 100% EOU in DTA does not attract any duty. - Decided in favour of assessee
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