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2019 (10) TMI 684 - AT - Central Excise100% EOU - the impugned goods were proceeded against on the premise that these goods were being cleared into the ‘domestic tariff area’ on which duty liability arises under section 3 of Central Excise Act, 1944, in show cause notice issued on 12th May 1994 - HELD THAT:- The appellant is a ‘100% export oriented unit’ entitled to duty-free clearance of raw materials, consumables and capital goods required for manufacture of the permitted products intended for export. The supply of impugned goods to a project funded by the International Development Agency, and against ‘international competitive bidding’ is also undisputed. There is no doubt that such supplies do result in saving of foreign exchange, and for that reason, are extended the benefits of ‘deemed export’ without having to leave the shores of India. However, these are prescriptions under the Export Import Policy and entitlements are restricted to the incentives enumerated therein. It is also not the case of the assessee that the central excise authorities or customs authorities are seeking to deny them the benefit granted at the time of import. In terms of Export Import Policy, the eligibility of inclusion of such clearances in the prescribed export obligation automatically derives for them the benefit of import duty exemption. The clearance have been effected to the ‘domestic tariff area’ with permission accorded by the jurisdictional Development Commissioner in accordance with the prescription in the Export Import Policy. The benefits of various concessions available therein would apply if within the quantitative prescriptions in the Export Import Policy and the relevant notification - the impugned order has not examined the applicability of the said notification or the submission on the computation of the duty liability. Holding that the proviso in Section 3(1) of Central Excise Act, 1944 is applicable to the impugned goods, the matter is remanded back to the original authority for computation of the duty liability after applying eligible notifications and scrutinising the claim of the appellant to a lesser assessable value - appeal allowed by way of remand.
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