TMI Blog2013 (11) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... r the relevant schemes - the goods lying in stock at the time of debonding would be liable to duty only at point of time of removal of those goods from place of manufacture. There was no removal of goods into DTA from EOU and before the final debonding order the goods had been exported out of India under advance authorization claim - In terms of para 6.18 (e) of the Foreign Trade Policy, while between the date of issue of no dues certificate by the Customs and Central Excise Authorities and the date of final debonding order by the Development Commissioner, the EOU unit shall not be entitled to claim any duty exemption for procurement of capital goods or inputs, the unit can claim advance authorization/DEPB/duty draw back - during the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities. On the instructions of the central excise authorities, the appellant in addition to payment of duty on capital goods and inputs also paid duty of Rs.29,17,195/- on the stock of inputs lying with them as on 25.3.2011, even though according to the appellant, the same were marked for export and in respect of the same, no duty was payable. According to the appellant, only the duty of Rs.6,31,360/- was payable on the inputs contained in the finished goods lying in stock as on 25.3.2011. However, after payment of duty as approved by the central excise authorities, the appellant were granted a no objection certificate by the Asstt. Commissioner, Central Excise on 28.4.2011. The appellant were issued debonding orders by the Development C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst which this appeal has been filed. 2. Heard both the sides. 3. Shri Devinder Sharma, Consultant, ld. Counsel for the appellant, pleaded that in this case in-principle approval for debonding had been granted by the Development Commissioner on 25.3.2011 which was followed by the physical stock taking on 31.3.2011 of raw material goods and finished goods in respect of which the duty is to be paid, that as on 31.3.2011, there was certain stock of finished products lying with the appellant which was meant for export and which had been manufactured out of duty free inputs, that though no duty was payable in respect of stock of finished goods meant for export, on instructions of the Central Excise Authorities, the appellant paid the duty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) to Appendix 14-I-L, the 100% EOU would continue to be treated as EOU/EHTP/STP unit till the date of final exit order or issue of fresh LOP under the new scheme in cases of conversion from one scheme to the other and subject to monitoring of the stipulated obligations under the relevant scheme, keeping in view the Note (ii) to Appendix-14-1-L of the Hand Book of Procedure, the Tribunal in the case of Sterlite Optical Technologies Ltd. Vs. CC CE, Aurangabad reported in 2011 (270) ELT 266 (Tribunal-Mubmai) (para-8) has observed that a 100% EOU has to be treated as EOU till the date of final debonding order issued by the Development Commissioner and only after this date, it could function as normal DTA unit, that same view has been taken b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to the DTA unit, the same would have to be treated as clearance to the DTA and the duty on the finished goods would be attracted, which would be payable in terms of the proviso to Section 3(1) of Central Excise Act. He, therefore, pleaded that there is no infirmity in the impugned order. 5. We have considered the submissions from both the sides and perused the records. 6. The appellant s unit, on the basis of their application for debonding, had been granted in-principle approval for debonding by the Development Commissioners letter dated 25.3.2011. The debonding was subject to the payment of customs and excise duty as applicable on the stock of import and indigenous capital goods, raw materials, components, consumables and spare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port the capital goods, raw materials/components, etc. In this case, before final debonding, there was stock of finished goods involving duty of Rs.29,17,195/- and all these finished goods had been exported out of India prior to the final debonding order. The export was under claim for advance authorization. According to the department after in-principle approval for debonding but before the final debonding order, the stock of finished goods would be deemed to have been cleared into DTA and would be liable to duty in terms of proviso to Section 3(1) of the Central Excise Act. However, on the other hand, the appellants plea is that there was no clearance of the goods and unless and until the goods are cleared no duty can be charged. 7. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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