TMI Blog2006 (1) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... T.K. Jayaraman, Member (T)]. The appellant is a 100% E.O.U. licensed for production of cut Roses. In terms of Notification 126/94-Cus., dated 3-6-94 as amended, they had imported goods without payment of duty. Investigations reveal that the appellants cleared cut flowers valued at Rs. 9,67,979/- produced by them into the Domestic Tariff Area (DTA) during the period from 26-12-95 to 28-2-97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Advocate urged that the appellants were under a bona fide belief that the rejected cut flowers are not liable to any duty. There was actually no mala fide. As regards the demand of duty, he submits that in terms of Para 3 of the relevant Notification what was required to be paid by the appellants on clearance of the goods to the DTA is the Customs duty on the inputs used in the manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are used for the purposes of production, manufacture or packaging of articles and such articles (including rejects, waste and scrap material arising in the course of production, manufacture or packaging of such articles) even if not exported out of India are allowed to be sold in India under and in accordance with the Export-Import Policy and in such quantity and subject to such other limitations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Advocate that in the present case duty can be demanded only on the input materials, for example, nutrients, fertilizers, etc. used in the production of the cut flowers. The impugned orders do not throw any light as to how the duty was arrived at. Even the Original authority did not discuss the same. It is the contention of the learned Advocate that the duty demand represents the duty on the cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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