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2018 (9) TMI 1191 - AT - Central Excise100% EOU - Extended period of limitation - It appeared to the department that the quantum of spares procured / imported without payment of central excise duties / customs duties removed from the bonded warehouse to the quarries and used in the quarry equipment had exceeded the limit of 5% of the value of the goods imported by the appellant - Benefit of exemption under N/N. 22/2003-CE as amended and also N/N. 52/2003-Cus. as amended. Whether the restriction of the 5% is applicable to the spares that are removed from EOU to the quarries or whether the said restriction of 5% is in respect of the spares that are procured / imported by 100% EOU? Held that:- There is no limit for the procurement of spares required for capital goods for use within EOU. The restriction of 5% is for removal of spares to the quarrying site. The ld. AR has been at pains to argue that DGFT circular is not binding upon the Customs department. However, it is pertinent to note that the above clarification has been issued only after consultation with, and clarification from, the Department of Revenue of which only CBEC is a wing - there is no violation of conditions of the Notifications and the allegation that the appellants have imported spares over and above 5% and thus is not eligible for the exemption of customs duties / central excise duties is without any legal basis. Time Limitation - Held that:- It is seen that the appellants have been furnishing fortnightly statements showing the movement of goods / spares to their quarries. Further, CT-3 certificates have also been issued in respect of the goods moved to the quarries - the department had full knowledge and permission was granted to the appellant for transfer of such items to the quarries - the allegation that the appellant is guilty of suppression of facts with intent to evade payment of duty cannot sustain. Appeals succeed both on merits and on limitation - Appeal allowed - decided in favor of appellant.
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