Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 450 - AT - Central ExciseConcessional rate of duty - benefit of Sr. No.3 to Notification No. 23/2003-CE dated 31.03.2003 - denial of benefit on the ground that when raw materials were procured from 100% EOU / SEZ units, the same amounts to “imports” for the purpose of procurement of goods by the Appellant and hence, ineligible for such benefit of Sr. No.3 to Notification No. 23/2003-CE dated 31.03.2003 - HELD THAT:- The definition of the terms “import” and “export” in Customs Act, 1962, SEZ Act, 2005 as well as FT (D & R) Act, 1992 clearly show that only the goods physically brought from outside India will be treated as imported goods. Since SEZ is located within India only, it cannot be assumed to be foreign territory. Even the deeming fiction created under Notification No.23/03-CE limits its scope to goods received from other 100% EOUs as well as certain deemed exports supplies under para 8.3(a) and (b) of the FTP. Such deeming fiction does not cover goods received from SEZ at all. That despite defining the term “DTA” in Notification No. 23/03-CE (Sr. No.3), the condition No.3 states that in order to claim benefit of concessional rate under Sr. No.3, “wholly from raw materials produced or manufactured in India”. The condition does not state that “wholly from raw materials produced or manufactured in DTA”, and such meaning therefore cannot be artificially assigned by revenue authorities. Since goods produced and supplied by SEZ unit to the Appellant are to be treated as produced in India only, the condition No.3 to Notification No. 23/03-CE can be said to be fulfilled in such circumstances. Benefit allowed - appeal allowed - decided in favor of appellant.
|