Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (3) TMI 710 - CESTAT MUMBAI

2016 (3) TMI 710 - CESTAT MUMBAI - 2016 (336) E.L.T. 138 (Tri. - Mumbai) - 100% EOU - clearing goods to DTA - Entitlement to benefit of Notification No. 13/98-CE dated 02/06/98 - notice was issued seeking to recover duty - Held that:- In order to avail the benefit of notification 13/98-CE it is essential to establish that such goods are otherwise exempt. The respondents had sought to establish that they are entitled to benefit of notification 6/2006-CE. In the instant case the raw material is ob .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion No. 13/98 as, they failed to establish availability of notification 6/2006-CE. - Furthermore the importer had fulfilled the condition of the notification in so much as he had not availed the credit under CENVAT. - Decided in favour of revenue - Appeal No. E/229/05 - A/86146/16/EB - Dated:- 2-3-2016 - SS GARG, MEMBER (JUDICIAL) AND RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri VK Agarwal, Addl. Comm. (AR) For the Respondent : Shri Gajendra Jain, Adv. ORDER PER: RAJU: 1. The responde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rate of duty; and b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a),(b),(c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997- 31 March, 2002. The revenue had no objection regarding the condition (b). However, it was felt that the appellants are not fulfilling condition (a) and therefore, not entitled to the benefit of said notification. Accordingly, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed by the impugned order, the revenue is in appeal before us. 2. The learned AR argued that the respondents are not entitled to the benefit of Notification No. 13/98-CE dated 02/06/98 as the goods manufactured by them are clearly recognizable as the goods manufactured using fully exempted raw materials. The respondents were manufacturing ropes out of tapes procured duty free as the respondents were EOU. The revenue also relied on the decision of the Hon'ble Supreme Court in the case of Dhire .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s: "If made from yarn, monofilament, tapes or strips on which the appropriate duty of excise leviable under the Fist Schedule, the special duty of excise leviable under the Second Schedule or as the case may be the additional duty leviable under the Customs Tariff Act, 1975, has already been paid." It was argued by them that any manufacturer within the domestic tariff area would be entitled to avail of the said exemption and it does not matter if they themselves were able to avail the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oncessional rate of duty for finished goods cleared by an EOU subject to two conditions. The said conditions are as follows: a) such finished products, if manufactured and cleared by a unit other than a hundred per cent. export oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to Nil rate of duty; and b) the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

trips on which the appropriate duty of excise leviable under the Fist Schedule, the special duty of excise leviable under the Second Schedule or as the case may be the additional duty leviable under the Customs Tariff Act, 1975, has already been paid" From a plain reading of the notification, it is clear that the said exemption is available to finished goods, only if such finished products fulfill the condition of the notification 6/2006-CE. It is seen that the Commissioner (A) has held tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er CT3. Also it is not disputed that the conditions prescribed under Notification No. 13/98-CE dated 2/6/98 have not been fulfilled by the appellants. Notification No. 13/98-CE dated 2/6/98 prescribes the effective rate for DTA clearances by EOU, which has been paid by the appellants. The contention of the department that Notification No. 6/2002-CE dated 1/3/2002 is applicable for the clearances into DTA has no relevance as because the said Notification No. 6/2002 nowhere mentions that the same .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gly, the demand of ₹ 10,84,288/- and penalty of ₹ 4,00,000/- imposed under Rule 25 (1) are not sustainable". 6. It is seen that to avail the notification 13/98-CE it is essential to fulfill the conditions thereof. Condition (a) of the same reads as follows: a) such finished products, if manufactured and cleared by a unit other than a hundred per cent. export-oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to Nil .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version