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2015 (4) TMI 641 - CESTAT NEW DELHI

2015 (4) TMI 641 - CESTAT NEW DELHI - TMI - Actual user condition - various components were imported free of basic custom duty under Notification No.24/2005-Cus for use in manufacture of telecommunication equipment - re-export of defective components - re-export of surplus inventory - some components written-off - Held that:- Re-export of defective components after being issued for manufacturing would be treated as used for intended purpose - Following decision of Asahi India Safety Glass Limite .....

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e surplus inventory which was re-exported and the duty demand of ₹ 23,15,901/- in respect of the components written-off admittedly these components have not been used for the manufacture of the finished products and, therefore, in our view the Department is justified in invoking Rule 8 of the 1996 Rules for recovery of duty.

Since the components in respect of which the duty demand of ₹ 94,29,117/- has been confirmed have been re-exported, in our view, the customs authoriti .....

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/50774/2015 in Excise Appeal No.E/2740/2011-EX[DB] - Final Order No. 51192/2015 - Dated:- 8-4-2015 - Mr. Rakesh Kumar, Member (Technical) And Hon ble Mr. S. K. Mohanty, Member (Judicial),JJ. For the Appellant : Shri. Amit Jain, Advocate For the Respondent : Shri. Ranjan Khanna, DR ORDER Per: Rakesh Kumar The facts leading to filing of this appeal are in brief as under:- 1.1 The appellant are manufacturers of telecommunication equipment. For manufacture of telecommunication equipment they had imp .....

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der the 1996 Rules. The duty demand of ₹ 2,88,52,271/- has been confirmed against the appellant on the following three grounds:- 1) Certain imported components were written-off without use and hence the Department was of the view that the same were not used for the intended purpose and invoking Rule 8 of the 1996 Rules, the duty has been demanded. The duty demand of ₹ 23,15,901/- is on this basis. 2) The second category of components are those which were surplus inventory and were no .....

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confirmed the demand of the duty of ₹ 2,88,52,271/- from the appellant alongwith interest in it u/s 28 AB and has also imposed penalty of ₹ 20,23,000/- on them under section 112(a) of the Customs Act, 1962. Against this order of the Commissioner, this appeal has been filed. 2. Heard both the sides. 3. Shri Amit Jain, Advocate, the ld. Counsel for the appellant, pleaded that so far as the duty demand of ₹ 1,71,07,253/- in respect of the components which were used for assembly of .....

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014 in the appellant s own case, wherein on the question as to whether in respect of such components, the appellant would be required to reverse the cenvat credit of additional customs duty, the Tribunal held that the reversal of the additional customs duty is not required as such components have to be treated as having been used for the manufacture, that as regards the duty demand of ₹ 94,29,117/- in respect of surplus inventory of component which have been re-exported, he relies upon the .....

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respect of the components written-off, this demand is also not sustainable in view of the above mentioned judgment of Tribunal in the case of Kerala Hi-Tech Industries Ltd. vs. CCE, Cochin (supra), that in any case the imposition of penalty of ₹ 20,23,000/- is contrary to the provisions of law in view of the judgment of this Tribunal in the case of Titan Industries Ltd. vs. CCE, Chennai reported in 2008 (232) ELT 281 (Tri. Chennai), wherein the Tribunal held that Rule 8 of the 1996 Rules .....

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n the case of Share Medical Care vs. Union of India reported in 2007 (209) ELT 321 (SC); CCE, Jaipur vs. Mahavir Aluminium Ltd. reported in 2007 (212) ELT 3 (SC) and Siddharth a Tubes Pvt. Ltd. vs. CCE, Indore (M.P.) reported in 2006 (193) ELT 3 (SC), wherein it was held that a benefit which is legally admissible can be claimed at any stage. 4. Shri R.K. Grover, ld. Departmental Representative defended the impugned order by reiterating the findings of the Commissioner. 5. We have considered the .....

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Central Excise Duty leviable has been paid on the imported components and the Appellant have taken cenvat credit of the Additional Customs Duty paid. 7. The duty demand of ₹ 1,71,07,253/- is in respect of the components which had initially been issued for use in the manufacture and were used for assembly of the finished product but on testing the same were found to be defective and hence were taken out and subsequently re-exported. According to the Department, these components have not bee .....

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her these goods can be treated as having been used for the intended purpose. We find that in the appellant s own case decided by the Tribunal s final order No.53407-53408/ 2008 dated 21.08.2014 this very question had come up for consideration. The point of dispute in that case was as to whether in respect of the components which had been issued for manufacture and were used for assembly but later-on being found to be defective was re-exported, cenvat credit of the additional customs duty earlier .....

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