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2009 (8) TMI 564 - AT - CustomsExport oriented Units- Notification No. 52/2003-Cus- The appellants herein are a 100% EOU. They had imported transformers, engines, motors, pumps etc., under the cover of three bills of entry availing exemption from customs duty in terms of Notification No. 52/03-Cus., dated 31-3-2003. This Notification provided exemption for specified goods imported for manufacture of articles for export or for being used in connection with production or packing or job work for export of goods/services by an EOU. Adjudicating allegation that the appellants had not fulfilled the conditions of Notification No. 52/03-Cus., vide the impugned order, the Commissioner confirmed demand being the exemption availed on imports of unserviceable motors etc., as not admissible. Held that- The appellants commenced production on 1-9-2004 and the disputed activities took place within five years of 1-9-2004. Therefore the appellants could not be denied the benefit of Notification No. 52/03-Cus. for the impugned imports on the ground that the same were subjected to segregation which did not amount to manufacture as defined in Section 2(f) of the Central Excise Act. We also find that the same adjudicating authority has allowed the benefit of exemption notification to the appellant. In respect of a similar consignment used for segregating scrap in view of the Public Notice No. 45(RE-2005/2004-2009) dated 31-8-2005. In the circumstances, we find that the impugned demand of duty, order of fine and penalty are not sustainable. We vacate the same and allow this appeal.
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