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2016 (4) TMI 283 - AT - Central ExciseDemand of duty - PP bags procured duty free under Notification No. 43/2001-CE(NT) for packing of export goods - Manufacturer of vegetable oil and De Oiled Cake (DOC), exempt from Central Excise duty - Demand confirmed on the ground that at the port at the time of loading of goods on to the ship, DOC was taken out of these bags and loaded on the ship bulk and these bags were discarded as scrap at the port and therefore as the bags were not exported the duty foregone in terms of Notification No. 43/2001-CE(NT) became recoverable. Also DOC was also exported by train to Pakistan and in respect of such export DOC crossed the border in PP bags. Held that:- as regards the exports to Pakistan by train there is no evidence that the goods did not cross the border packed in PP bags and therefore if there is any demand in respect of the same, the same would not be sustainable. Regarding export of DOC by ships, the PP bags were used for manufacture/processing of the export goods as packing is certainly a process. The condition of the notification is that the goods (DOC) for the processing of which the bags were procured duty free should be exported. There is no dispute that DOC was exported and it is not the allegation that DOC was not exported. Even the evidence to that effect has been given in the form of Customs endorsed AREs. The said notification nowhere stipulates that the goods which were procured duty free under Notification No. 43/2001-CE(NT) are required to be exported. Therefore, the demand is not sustainable. - Decided in favour of appellant
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