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2017 (10) TMI 303 - CESTAT BANGALORE100% EOU - clearance of scrap - fixation of SION - The Department found that percentage of scrap generated and cleared is more than SION - Held that: - this is not a case where the appellant has unauthorisedly removed the inputs from their EOU. The period involved is from April 2005 to January 2007, whereas SION have been fixed by the DGFT Committee only on 3.10.2006. In the present case, thus at the most SION fixed could be made applicable only for about four-month period. In the present case, the appellant has paid the duty on the scrap which has been found in excess of Norms fixed. It is pointed out that when the Norms have been fixed in the month of October, there cannot be any demand for the period prior to 3.10.2006, the date when the Norms were fixed by the DGFT Committee. When the appellant has already paid the duty of Central Excise on the scrap arising out of the manufacturing process under Section 3 of the Central Excise Act, there is no justification for demanding Customs Duty on the raw material which they say has been consumed in excess of SION and has gone into the scrap on which duty of Central Excise has been paid by the appellant. The Department is demanding Customs duty under Section 72, whereas there is no proof that the appellant improperly removed the goods from their 100% EOU. Considering the ratio of the Tribunal s decision in the case of Cosco Blossoms Pvt. Ltd. vs. CC, Delhi [2003 (12) TMI 114 - CESTAT, NEW DELHI], we do not find any justification for the present demand of Customs duty from the appellant. Appeal allowed - decided in favor of appellant.
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