TMI Blog2015 (4) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... such by-product in the DTA may be made if such sale is permitted in the letter of permission (LOP)/letter of intent (LOI). Accordingly, a separate and specific permission is not warranted. - concessional Notification No. 23/2003 CE could not have been denied to the appellant only for the reason that they have not obtained the specific permission for sale of by-product under DTA. However, the appellant is required to comply with other conditions of policy and notification such as the total sale in DTA should not exceed 50% of FOB value of export clearance, achievement of positive NFE etc. We therefore remand the matter to the original adjudicating authority with the direction that the benefit of Notification No. 23/2003-CE should not be deni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 11A(1) and imposed equal amount of penalty under section 11AC and also ordered interest under section 11AB. Being aggrieved with the said order-in-original the appellant filed appeal before the Commissioner (Appeals), which was rejected. Hence the appellant is before us. 2. Shri. S. Narayanan, Ld. Counsel for the appellant submits that both the lower authorities denied exemption Notification No. 23/2003-CE dated 31/3/2003 on the ground that the appellant has not obtained the permission to clear Hydrochloric Acid at concessional rate of duty under DTA. It is his submission that as regard all other conditions required for the purpose of DTA clearance except the permission, there is no dispute. In support, he referred the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egal and the same is required to be sustained. 4. We have carefully considered the submissions made by both the sides and perused the records. 5. We perused the Circular No. 31/2001-Cus dated 24/5/2001. The relevant portion of the circular extracted below: DTA Sale of By-Products by EOUs/EPZ Units. 13. Before revision of the Policy, by-products included in the LOP/LOI were allowed to be sold in DTA on payment of applicable duty. The revised para 9.9(h) of the Policy provides that within the overall limit of 50% of FOB value of exports, by-products can also be cleared for sale in DTA (subject to achievement of NFEP) on payment of concessional duty i.e. 50% customs duty. Suitable amendment in notification No.2/95-CE, dated 4-1-95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant only for the reason that they have not obtained the specific permission for sale of by-product under DTA. However, the appellant is required to comply with other conditions of policy and notification such as the total sale in DTA should not exceed 50% of FOB value of export clearance, achievement of positive NFE etc. We therefore remand the matter to the original adjudicating authority with the direction that the benefit of Notification No. 23/2003-CE should not be denied for want of specific permission. The Adjudicating authority, however, shall verify other conditions such as sale of by-product should well within the limit of total of 50% of FOB value of the exports clearance and the appellant has achieved positive NFE. The appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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