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Appeal under Section 35G(1) of the Central Excise Act, 1944 against the order of Customs, Excise & Service Tax Appellate Tribunal regarding suspension of duty-free raw material procurement right for 100 percent E.O.U. Analysis: The appeal was filed by the Commissioner, Custom & Central Excise, Meerut-II under Section 35G(1) of the Central Excise Act, 1944 against the order of Customs, Excise & Service Tax Appellate Tribunal dated 17-12-2004. The respondent had been granted the status of 100 percent E.O.U. (Export Oriented Unit) which entitled them to obtain raw material duty-free. The Central Board of Excise & Custom issued a circular, based on which the Commissioner, Central Excise suspended the respondent's right to procure duty-free raw material. The Tribunal held that the right to duty-free raw material for 100 percent E.O.U. units is granted by law and can only be revoked by canceling the E.O.U. status or through an order authorized by the same law. The Tribunal found no error in this reasoning. The Court emphasized that the right to procure duty-free raw material is inherent to the 100 percent E.O.U. status and cannot be taken away by authorities like C.B.E.C. or the Commissioner, Central Excise through circulars or orders. The Court dismissed the appellant's arguments regarding the respondent's alleged misconduct as irrelevant, stating that such allegations do not justify the Commissioner's order or the C.B.E.C. circular. If the respondent fails to meet the requirements of 100 percent E.O.U., action for canceling the status can be taken, but benefits derived from that status cannot be revoked without specific legal provisions authorizing such action. In conclusion, the Court found no merit in the appeal and dismissed it. The judgment reaffirmed that the right to procure duty-free raw material for 100 percent E.O.U. units is protected by law and can only be revoked through specific legal provisions such as canceling the E.O.U. status.
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