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2019 (12) TMI 1058 - AT - Central Excise100% EOU - insecticide procured by the appellant was sent to farmers and the produce viz. gherkins were brought back to the EOU and later exported after undertaking further processing - applicability of N/N. 22/2003-CE dated 01.03.2003 - HELD THAT:- It is not disputed that the appellant was a 100% EOU engaged in the manufacture and export of gherkins (vegetables). The said item in question viz. ‘Neemazol TS 1%’ was procured without payment of duty in terms of Notification 22/2003 which is covered in Sl. No. 26 of Annexure I of the said Notification. Further as per Clause (a) of the Notification, items falling under Sl. No. 14 to 26 of Annexure-I were permitted to be taken out of EOU to fields and farms of contract farmers of the EOU for production and bring back the produce to the unit for export subject to fulfillment of certain conditions - Further, in the present case, the insecticides procured by the appellant was sent to the farmers and the produce viz. gherkins were brought back to the EOU and later exported after undertaking further processing. The Commissioner (Appeals) has wrongly held that the appellant is required to take the permission of the Development Commissioner for procurement of the item in question. During the relevant period duty free goods from local manufacturers could be procured only against CT-3 certificate issued by the Range Officer having jurisdiction over the EOU and in the present case also the appellants have procured the insecticide against CT-3 certificate issued by the jurisdictional Range Officer. Further, we find that the original authority has rightly held that the items procured by the appellant were covered by Sl. No. 26 appearing in Annexure-I to Notification No. 22/2003-CE dated 01.03.2003 read with Clause (a) (i) read with Clause 5 of the said Notification - Further, the item procured by the appellant in terms of the Notification was ultimately used for export of goods and therefore the appellants are clearly entitled to the exemption. Appeal allowed - decided in favor of appellant.
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