2002 (3) TMI 842

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pondent. [Order per : S.S. Kang, Member (J)]. - Appellants filed this appeal against the adjudication order passed by the Commissioner of Central Excise. 2. Heard both sides. 3. Appellants were manufacturing printed circuit boards (PCB) falling under sub-heading 8534.00 of Central Excise Tariff and were working as 100% EOU. They were permitted to manufacture the goods under bond and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... were not entitled for the benefit of Notification No. 2/95-C.E. in respect of the goods sold in DTA without permission. His submission is that by availing the benefit of Notification No. 2/95-C.E., dated 4-1-1995, they had already paid central excise duty equivalent to 50% of the duties of customs leviable on the goods if imported into India in terms of Notification No. 2/95-C.E. Ld. Counsel reli .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cation No. 2/95-C.E. and according to Section 3 of Central Excise Act, the goods manufactured by 100% EOUs, are liable to duty equal to the duties of customs under the Customs Tariff. 6. In this case, the appellants cleared the goods in DTA and availed the benefit of Notification 2/95-C.E. Appellants stated that they are not entitled for the benefit of Notification No. 2/95-C.E. The only iss .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... shall be applicable only to sales made in DTA up to 25% of production which are allowed to be sold into India as per provision of EXIM Policy." In other words, Hon'ble Court decided that if the goods are "not allowed" to be sold in India, the proviso to Section 3(1) of Central Excise Act, 1944 shall not be applicable. The expression 'allowed to be sold' has since been replaced with 'brought to an .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... allowed to be sold in India, shall continue to be chargeable to duty under main Section 3(1) of Central Excise Act, 1944. Appropriate action may be taken immediately to safeguard revenue and all pending decisions may be settled accordingly." 7. In view of above circular, the appellants are only liable to pay central excise duty as per Central Excise Tariff. The impugned order, demanding dut .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X