TMI Blog2005 (10) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... ars they have not imported any raw material. They have achieved value additions in terms of net foreign exchange of nearly 100%. As a BIFR company, they were closed for a long period, re-commencing operation only in August 1999. 1.2 The Development Commissioner, SEEPZ-SEZ, Ministry of Commerce, Government of India, Andheri, Mumbai, is the sponsoring authority for the Appellants EOU. They after completing each quarter based on their export performance, duly certified, made application to the said Development Commissioner for grant of DTA sale permission. After receipt of such permissions, they started selling goods to various customers, including Tata Iron Steel Company Ltd., hereinafter referred to as TISCO, Jamshedpur. 1.3 Due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 31-12-2001, revised assessable values due to reduction in conversion fees paid by TISCO was intimated to the Department on 19-7-2001, indicating clearly that the contract was a conversion contract. On their request, the copy of the agreement with TISCO was sent vide a letter dated 3-9-2001 acknowledged by the Department and Central Excise Audit team visited the assessee s works in mid September 2001 and on finding that the dispatches lo TISCO were not permitted under DTA sale as the same amounted to job work/sub-contracting. The CIU Officers thereafter came to the works and ordered the detention of 1,084 MT of Silicon Manganese, on the ground that the same was not permitted to be dispatched against DTA sale permission as the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/2001 10991.850 22,45,43,442/- 8,11,16,273/- 3. 27-9-2002 V(72)3-10/2002/ 4262 10/2001 to 11/2001 1110.000 2,28,47,130/- 79,50,801/- 4. 16-12-2002 V(72)3-27/02/d/ 5304 12/2001 524.000 1,06,68,417/- 37,12,609/-, 5. 4-2-2003 V(72)3-26/02/364 01/2002 to 02/2002 986.000 2,02,94,838/- 70,62,604/- 6. 25-2-2003 V(72) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rro Manganese and Silicon Manganese and was clearing the same for export as well as in DTA on payment of applicable Central Excise duty is not under contest. b. The Commissioner has relied upon the findings in the case of Prestige Engineering (India) Ltd. v. CCE - 1997 (73) 497 (S.C.) and that the applications of minor items by the job worker would not detract from the nature and character of his work and thereafter found that the conversion performed by the EOU was nothing but job work. A perusal of this order reveals that it is the nature of the processing done, which would result in the coverage of the definition of the term job work. When a new product, commercially different from the raw material supplied, would emerge, in that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has only took place. The levy would be applicable on Silicon Manganese since manufacture took place is not contested by ld. DR. The other findings on the EXIM Policy definition and Board s instructions permitting job work as interpreted by the ld. Commissioner will not alter the position of the EOU being a manufacturer of the Silicon Manganese in question. When the EOU is to be held as a manufacturer of Silicon Manganese in this case and duty is being demanded from the said EOU, the question of the EOU being a job worker and or sub-contractor for TISCO cannot be upheld on the facts of this case. c. Since the finding of the Commissioner, in para 17(ii), that the transactions between the EOU and TISCO was only return of the goods, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner, SEEPZ dated 27-2-2002, covering the operations in this case as permissible under para 9.9(b) of the EXIM Policy, is not in conformity with the legal provisions, cannot be upheld. As regards the reliance on letter dated 23-8-2002 in para 19(ii) and the statement of the Vice President of the appellants in para 19(iii), notwithstanding, we find no reasons to arrive at a finding that the subject clearances were not permissible under para 9.9(b) of the EXIM Policy. e. The proposals in the show cause notices proceed to deny the clearances effected under the first proviso to Section 3(1) of the Central Excise Act, 1944, i.e allowed to be sold in India and proceeds to levy the duty under main Section 3(1) of the Act. The Larger Be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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