TMI Blog2008 (6) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... ief facts of the case are that the appellants were engaged in the manufacture of Solar Photovoltaic Modules and Solar Photovoltaic Systems (SPV Systems) falling under Chapter sub-heading No. 8541.40 of the Central Excise Tariff Act, 1985. They were initially having one DTA unit, manufacturing these two items. They opted for partial conversion of ground floor of the building premises of their DTA unit into a 100% E.O.U. They obtained a Letter of Permission to this effect from the Development Commissioner, VSEZ, and executed the Legal Agreement with the Development Commissioner. They were also issued the Customs Private Bonded Warehouse License No. 3/2003 dated 17-7-2003 for the premises as declared in their application. They had also, ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (172) E.L.T. 77 (Tri.-Del.)]. It is the submission of the learned Counsel that partial utilization of premises of E.O.U. is not an offence in terms of the Board s Circular No. 38/95-Cus. dated 17-5-1995 granting permission for such partial utilization of common facilities with certain guidelines. He submitted that the stipulated guidelines have been followed and the benefit of notification for DTA clearances cannot be denied. He also submitted that the export obligation had been completed in terms of EOU Licence and the premises had been de-bonded. They had also achieved Net Foreign Exchange (NFE). It is the submission that the Commissioner cannot confirm the demand and the same cannot be done without hearing to the appellants on the modi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .O.U. He has also noted that there is no need to obtain permission to use the common facilities for the EOU and DTA unit. Further he has noted that there may not be any problem if duty paid goods are used as common facility for the EOU and DTA unit during the period of partial conversion into EOU. This facts have been informed to the Department. The Asst. Development Commissioner vide letter dated 7-8-2006 had also confirmed about the unit importing raw materials for a value of Rs. 1047.18 lakhs and procured indigenous raw materials for Rs. 11.19 lakhs and about the unit starting production from 1-8-2003 and effecting exports for a value of Rs. 1061.93 lakhs. The Department has also been informed by the Asst. Development Commissioner vide l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification No. 52/2003. The point which the learned Advocate urged was the said condition 15 would not be applicable as the goods were imported in the year 1999. Further we understand that the goods which were in the premises shared by the customer of the appellants had already been debonded on payment of appropriate duty. Moreover, the Adjudicating authority has demanded the duty foregone on the entire goods imported and procured locally. While the Show Cause Notice was invoked the Notification issued in 2003, it is seen that the Adjudicating authority has given a finding on violation of condition 15 of Notification No. 106/2001. We have also perused the copies of the Bills of Entry under which the Capital goods were imported. The goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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