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2017 (11) TMI 1039 - AT - Central Excise100% EOU - Liability of duty - by-products - neem cake and neem oil obtained from extracted kernel - job-work - Held that: - Clearly the product is manufactured within the scope of LOP and the appellants have been put to liability of account for it. The products manufactured by EOU by themselves or with the help of the job worker are to be disposed of in terms of the policy. In the present case, the disposal of two of their products is not in terms of the policy. Hence, the rate and the quantification of duty liability have to be arrived at in terms of the policy and applicable notification - These products are recognized for manufacture in the LOP. By demarcation of byproducts, the obligation cast on the appellants cannot be waived. These are not scrap or waste. Admittedly, these valuable products have been cleared to domestic market in violation of Foreign Trade Policy - the appellants are liable to duty as confirmed in terms of Section 3 (1) of CEA, 44. Extended period of limitation - penalty - Held that: - The question that all the facts are taken from the records of the appellants by itself will not take away the sustainability of the demands for longer period - extended period and penalty rightly imposed. Appeal dismissed - decided against appellant.
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