TMI Blog2014 (3) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... actured in India. Moreover in this case, there is no dispute that the PSF supplied by M/s. Indo Rama to the Appellant Company had been manufactured by them. Just because M/s. Indo Rama availed deemed export benefits under para 8.3(a) & 8.3(b) of the EXIM Policy in respect of PSF manufactured and supplied by them to the Appellant Company, the PSF supplied to the Appellant Company will not cease to be manufactured in India. There is no provision in the notification that the goods received as deemed exports are to be treated as “goods not produced or manufactured in India” - Appellant have a strong prima facie case in their favour and the requirement of pre-deposit will cause undue hardship - Stay granted. - E/1228 and 1254/2010 - Stay Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced or manufactured in India and accordingly the duty payable on DTA clearances would be equal to the duties of excise payable under Section 3 of Central Excise Act, 1944 or any other law for the time being in force, on like goods produced or manufactured in India. However, according to the Department, in view of Explanation II(ii) to this notification, the PSF received from M/s. Indo Rama under Deemed export benefit (to M/s. Indo Rama) is deemed to be imported goods and hence not manufactured in India and, therefore, rate of duty applicable would be the rate specified in Sl. No. 2 of the table to the notification i.e. 50% of the aggregate of duties of customs. On this basis, a show cause notice dated 3-11-2008 was issued to the Appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n India and since the spun yarn is wholly manufactured form the PSF manufactured in India, the same, is covered by S. No. 3 of the table to Notification No. 23/2003-C.E., that the goods deemed to be imported goods can not further be deemed to be not manufactured in India, as the goods imported into India can be product of India origin also, that just because the PSF supplier - M/s. Indo Rama have availed Deemed export benefits under para 8.3(a) and 8.3(b) of the EXIM Policy in respect of PSF supplied to the Appellant company, the PSF so supplied will not cease to be manufactured in India, that the impugned order, therefore, not correct, that the Appellant have a strong prima facie case and that in view of this, the requirement of pre-deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n S. No. 2 of the table to the notification or the rate mentioned in S. No. 3 of the Table. 6. The rate under S. No. 3 of the table would be applicable if the goods cleared into DTA are produced or manufactured wholly from raw materials produced or manufactured in India. There is no dispute that cotton used is the cotton produced in India and PSF used is that manufactured and supplied by M/s. Indo Rama. According to the Department, since in respect of PSF, M/s. Indo Rama have availed deemed export benefits and for this reason, in terms of Explanation II(ii) to the notification, the same has to be treated as imported goods for the purpose of this exemption notification, the same cannot be treated produced or manufactured in India . We a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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