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2024 (3) TMI 365 - AT - Customs100% EOU - Debonding - Demand of differential duty - Penalty - EXIM policy - switched over from 100% EOU Scheme to the EPCG Scheme - delay in getting permission from the Development Commissioner and without obtaining a “No Dues Certificate” - contravention of Notification No. 23/2003-CE - Export of Hydrogen Peroxide - classifiable under Chapter Sub Heading 28.47 - HELD THAT:- We find that appellant was granted permission to exit from 100% EOU status to EPCG Scheme by in-principle permission to exit on 20.11.2003. Thereafter, it seems the Excise/Customs Department did not issued the necessary No Objection Certificate within the reasonable time of 2 to 3 months. The validity of the period for in-principle permission was extended upto 18.11.2004 by the Development Commissioner. Jurisdictional Superintendent issued the demand directing payment of customs and excise duty after assessing, only on 25.03.2005, in pursuant thereto appellant have within a weeks time deposited the necessary and the requisite duty/taxes on 29.03.2005 and 30.03.2005 under intimation of Revenue, and also furnished the details of duty payment and execution of bond to the Assistant Commissioner, Nellore Division. In the meanwhile, Development Commissioner had issued no due certificate on 04.11.2004 for conversion of existing EOU Scheme into EPCG Scheme. Thereafter, after delay of several months, ‘no dues’ is issued by the Jurisdictional Commissioner on 03.01.2006. All throughout the period from April 2005 to 3, January 2006, the appellant was pursuing the Excise Department to issue necessary no objection/no due certificate which was issued after much delay on 03.01.2006. Thereafter, the appellant was allowed exit finally from the 100% EOU scheme to switch over to EPCG scheme, from the date of discharge of its duty liability i.e. 30.03.2005 in terms of para 6.16(d) of FTP read with para 5.4 of HBP 2004-09. We find that DGFT who are the competent authority have allowed the de-bounding from 100% EOU to switch over to EPCG Scheme with effect from 30.03.2005 and admittedly had discharged all the dues as assessed by the excise/customs department, being pre-condition for de-bonding. We further find that the delay occurred in the final de-bonding order to be issued by DGFT, due to delay wholly attributable to Customs/Excise Department, who have taken a time of almost one year or 11 months in issuing the no dues certificate. We hold that the appellant have rightly paid tax/duty on the goods cleared with effect from 01.04.2005 as a DTA unit under EPCG Scheme. Accordingly, we allow the appeal and set aside the impugned order. Appellant is entitled to consequential benefits as per law.
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