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Commissioner Of Central Excise, Mumbai Versus Garware Wall Ropes Ltd

2016 (3) TMI 710 - CESTAT 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 obtained without payment of duty. The expression such finished products for t .....

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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 respondent is an EOU manufacturing nylon ropes out of polypropylene tapes. The resp .....

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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, a notice was issued seeking to recover duty. The original authority confir .....

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d 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 Dhiren Chemical Industries - 2002 (139) ELT 3 and on the decision of the Larger .....

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opriate 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 said exemption or not. It was argued that the condition (a) is meant to be .....

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o 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 sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9 .....

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ule, 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 that notification 6/2006-CE is irrelevant for the purpose of availing benefit .....

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cation 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 is applicable for 100% EOU. In fact, for clearances from a 100% EOU into DT .....

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posed 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 rate of duty; Therefore, in order to avail the benefit of notification 13/9 .....

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