Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 492 - AT - Central Excise100% EOU - destroyed goods - N/N. 22/2003 CE read with N/N. 52/2003 CUS - manufacture of parts of data projector as overview IU, PU, Interface etc - whether the appellant are liable to pay duty for the raw materials which was acquired duty-free under N/N. 52/2003 CUS read with N/N. 22/2003 CE, duty-free, on the remnants, rejects etc., which were destroyed by them under intimation to the Revenue during the period in dispute from April, 2007 to March, 2014? Held that: - the appellant, as required under the N/N. 52/2003 CUS read with N/N. 22/2003 CE, as amended, read with the Foreign Trade Policy 2004 09 have, following the procedure of law given proper intimation to the Department that certain goods and raw materials, work in progress etc have gone waste, rejects, remnants, etc., and accordingly the same have been written off in the books of accounts and also the goods have been destroyed within the premises of their 100% EOU under prior intimation to the Revenue. Thus, there is no violation either of the Notification or of the Foreign Trade Policy or the provisions of the Central Excise Act or the Customs Act. Once the said raw material etc have been issued for production and when in the course of production on the shop floor such raw material, work in progress, etc., are rejected, the same is equivalent to use in the course of production and does not amount to removal of inputs as such. Accordingly, the goods destroyed were used in connection with the production of the final products of the appellant. There is no clearance of any goods as alleged in the show cause notice and as such, the demand of duty is unsustainable. Appeal allowed - decided in favor of appellant.
|