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TMI Blog2011 (1) TMI 466X X X X Extracts X X X X X X X X Extracts X X X X ..... ium Perborate and Hydrogen Peroxide. The EOU had procured indigenous and imported capital goods as well as indigenous and imported raw materials/consumables without payment of duty under the EOU scheme. The EOU had failed to achieve required Net Foreign Exchange (NFE) and failed to fulfill export obligation. After due process of law the Commissioner of Customs, Guntur demanded duty of Rs. 5,21,27,308/- from CIL and imposed on CIL a total penalty of Rs. 2,40,10,000/-. The impugned order also confiscated the capital goods procured by the appellant indigenously as well as through import and offered to redeem the same on payment of a total fine of Rs. 1,50,00,000/-. 3. As per the LOP issued in 1995, the EOU was permitted to manufacture an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trol of the Department to hear and dispose appeal impugning such order. We also note that the claim of the assessee that after allowing depreciation admissible as per the CBEC circulars and the relevant notification, duty due, if any, on the capital goods worked out to only Rs. 14,443/- is not without substance. In the circumstances the EOU has made a strong prima-facie case against the demand of entire exemption availed on the capital goods imported/indigenously procured. 5. According to the appellant, its export performance during the period of dispute has been as follows. Year Export of Sodium Perborate (Rs. In lacs) Export of Hydrogen Peroxide (Rs. in lacs) 1997-1998 84.02 1998-1999 103.18 1999-2000 41.39 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this policy, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining." In the instant case, there is no dispute that the assessee undertook processes such as stirring, stabilizing, testing, labeling and packing of Hydrogen Peroxide received before it was exported. Therefore, the finding that the assessee did not discharge the export obligation in respect of Hydrogen Peroxide or related raw materials/consumables procured solely for the reason that no manufacturing operations were involved in the production of the final product exported is, prima-facie, not sustainable. Moreover, for the period 1-4-2002 to 31-3-2005, the Development Commissioner ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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