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TMI Blog2010 (5) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... had obtained permission vide Green Card No. 1526/MEPS dated 11-5-06 (valid upto 10-5-2011) from the Madras Export Processing Zone (MEPS) Chennai, to convert this DTA Unit into a 100% EOU. On their request, they had also been granted with a Customs Licence No. 006/2006- Cus., dated 11-9-06 for a Private Bonded Warehouse under Section 58(1) of the Customs act, 1962 as a 100% EOU on conversion for manufacturing and clearance of goods (vide lower authority's letter C. No. VIII/40/08/06 (Customs) dated 11-9-06). Consequently, they had transferred the unutilised balance of credit lying as on the date of conversion viz. 11-9-06 to the said 100% EOU and utilized the same for payment of duty for clearance of goods for export by the 100% EOU. They ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 31-12-07 3,88,932/- 2.2 Aggrieved by this, the applicant have preferred three appeals with the Commissioner (Appeals) who after due process of law rejected the appeals. 3. Being aggrieved by the impugned order-in-appeal, the applicant has filed this revision application under Section 35EE of Central Excise Act, 1944 before Central Government on the following grounds : 3.1 The Commissioner (Appeals) has failed to see that the mere grant of LOP by the Development Commissioner of the EPZ, or the mere issuance of a PBWL by the Assistant Commissioner of Central Excise, or even the execution of the bond by the DTA Unit and its acceptance by the Asstt. Commissioner do not automatically covert the DTA Unit into an EOU. He has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; determining the duty pertaining to the said inputs and the finished goods, as if they are to be cleared out of the factory as such; (iii) debiting the amount of duty so determined by him in the Cenvat Credit Account; (iv) expunging the balance, if any, still left in the Cenvat Credit Account; (v) if the balance in the cenvat credit account is not sufficient to fully cover the duty so determined, by debiting the shortfall in the Running Bond Account. 3.5 Upon completion of the above-mentioned steps, the DTA Unit would stand coverted into an EOU, and thereafter it would be entitled to seek issuance of CT-3 certificates and procurement certificates required by it to procure inputs a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities that applicants' DTA unit was converted into an EOU on the mere issuance of a warehouse license on 16-9-06 is not sustainable in law. 3.9 The applicant has prima facie case and the rebate claims filed by them were sustainable in law. The Commissioner (Appeals) had not considered that the applicant had not physically acted upon the unit under EOU status nor availed any facility of the EOU at any point of time. 3.10 There is no revenue loss that had taken place in the instance case. The applicant had clearly performed their act and run their unit under DTA status and have been submitted all records such as Excise Periodical Returns, ARE-1 etc. to the Central excise Department. 3.11 All the activity of the units were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedural formalities. 3.16 While surrendering the EOU Licence, the Excise Authority concerned has also issued NIL due certificate to that of the Revenue Dues. 3.17 That as per the letter of approval by the MEPZ dated 28-4-06, it is clear that the "Date of Conversion" is the date of bonding with the Customs/Central Excise." The applicant Bond and Bank Guarantee were accepted by the bond officer only on 5-2-07 and thus the status of EOU for the applicant unit took place on 5-2-07. Thus the rebate claims in issue were pertaining to the year 2006 under the status of DTA and the applicants claims are sustainable in all manner. 5. Personal hearing scheduled in this case on 5-2-10 was attended by Shri R. Jaikrishnan, Advocate on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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