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2010 (3) TMI 517 - AT - Central ExciseDemand - the appellant cleared parts manufactured by them to EPCG Licence holders without payment of Central Excise duty on invalidation of EPCG licences. The department took-up investigations and in the impugned order, duty demand for Rs. 66,63,270/- with interest and penalty has been confirmed. The appellants submitted that the clearances were made under proper documents and with the knowledge of the department. Clarification issued by Ministry of Commerce Policy Circular No. 5/2005, dated 13.5.2005 and CBEC Letter dated 17.02.2006 and considering number of Tribunal decisions, customs duty to be worked out on basis of Notification No. 55/2003-Cus, for goods supplied by EOU to EPCG licence holder. Held that - assessee not EOU, clarification not applicable. Demand with interest upheld. Clearance made with knowledge and approval of department because of wrong interpretation of law. Imposition of penalty totally unfair and not called for.
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