TMI Blog2016 (9) TMI 1117X X X X Extracts X X X X X X X X Extracts X X X X ..... d reason for transfer of goods to another EOU. No restriction imposed in respect of supply from one EOU to another such EOU. The dates and events were examined by the Commissioner and it was found that these events would constitute a valid reason in terms of para 6.16 of the EXIM Policy - demand of duty not justified. Earlier the Appeal No. C/771/05 was filed in form E.A-5. However, the Asst. Register vide letter dated 24.06.2005 informed the appellant that appeal needs to be filed in C.A-5 instead of E.A.5. Accordingly, an appeal in the form C.A-5 was filed. The earlier appeal filed before this Tribunal in Appeal No. C/771/05 therefore becomes infructuous and duplicate. Appeal disposed off - decided against Revenue. - Appeal No. C/7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulfill the conditions stipulated in the letter of permission given to them. After examining the facts of the case and the defence of the assessee, the Commissioner dropped the proceedings. Aggrieved by such order, Revenue is in appeal before this Tribunal. 2. Learned A.R. argued that the facility of inter-unit transfer of goods under EOU scheme has been restricted to manufactured goods only under paragraph 6.13, 6.14 of the EXIM Policy 2002-2007. It was argued that such inter-unit transfer of goods is different from the transfer of unutilized duty free goods allowed under paragraph 6.16 of the EXIM Policy. It was argued that such inter-unit transfer of goods to another EOU can be done subject to the condition that such goods are accounte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in spite of having restored job work permission on 09.07.2002, the assessee preferred to obtain CT3 certificate on 10.07.2002 and chose to send the inputs to another EOU on inter unit transfer basis on 12.07.2002, 16.07.2002 and 17.07.2002 without giving any valid reason for the same; which is a clear violation of the para 6.16 of the Exim Policy 2002-07. 3. Learned Counsel for respondent relies on the impugned order. He also submitted the list of relevant dates for the purpose. He argued that while permission for job work was granted on 24.05.2002 but the same was withdrawn on 07.06.2002. The impugned goods had arrived on 08.06.2002 and 10.06.2002. The procurement certificates for import of the said goods were issued by the Dy. Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue is based on the clarification of Circular No. 91/2002-Cus dated 20.12.2002, paragraphs 2 and 3 of the said Circular reads as under:- 2. The matter has been examined by the Board. It may be noted that the facility of inter-unit transfer of goods under EOU/EPZ/STP/EHTP Scheme has been restricted to manufactured goods only under Paragraph 6.14 of the Exim Policy 2002-2007. Such inter-unit transfer of goods is different from the transfer of unutilised duty free goods allowed under paragraph 6.16 of the Exim Policy. Paragraph 6.16 of Exim Policy explicitly provides that in case an EOU/EPZ/EHTP/STP unit is unable, for valid reasons, to utilise the goods imported or procured from DTA, it may dispose of them in DTA on payment of applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 6.16 In case an EOU/EPZ/EHTP/STP unit is unable, for valid reasons, to utilize the goods, imported or procured from DTA, it may dispose them in the DTA on payment of applicable duties and submission of import license by DTA unit, wherever applicable or export. Supply from one EOU/EPZ/EHTP/STP unit to another such unit would be treated as import under this paragraph. The said para does not provide any such restriction in respect of supply from one EOU to another such EOU. Furthermore, on perusal of the impugned orders, in paragraph 7.3.2, while passing orders in the case the Commissioner had observed that:- 7.3.2. The assessee have explained that the order for the goods under import was placed when there was a subsisting pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02 17.07.2002 against valid CT -3 the renewal of permission for job work was granted on 16.07.2002 received by the head-office of the notice at Bombay on 17.07.2002 afternoon after that no further material was sent out for inter unit transfer. Under the facts and circumstances of the case, it is felt that the inter unit transfer made by the assessee should constitute valid reasons for the purpose of Para 6.16 (a) of the Export Import Policy as explained at Paragraph (3) in Circular No. 91/2002-Cus dated 20.12.2002. The clarifications issued by the Excise Customs are binding on the departmental officers as held by the Hon ble Supreme Court in the case of Commissioner of Central Excise Vadodara v Dhiren Chemical Industries 2002 (143 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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