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TMI Blog2016 (6) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Technical) Shri Puneet Bansal & Shri Prateek Jain, Advocates for the Appellant (s) Shri V.R. Reddy, Asstt. Commissioner (A.R.) for the Department ORDER The issue in these appeals, filed by the manufacturers appellants manufacturing parts of Data Projector, PU, Interface, Populated PCB etc., a 100% EOU, relates to leviability of SAD under Section 3(5) of the Customs Tariff Act, 1975 in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rea from where the appellants are undertaking service activity to cater to AMC customers. Infact, there is no sale of goods from the non-bonded area, yet the appellants are discharging Sales Tax/VAT liability on full value even though zero value invoice is raised on the AMC customers. An internal audit of the unit of the appellants was conducted during the months of September and October, 2010 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCN was adjudicated on contest and reduced the amount of Rs. 32,16,453 was confirmed with interest along with equal amount of penalty under Section 11 AC of the Act. Further a penalty of Rs. 10 lakh each under Rule 26 of Central Excise Rules, 2002 was imposed on Mr. Rakesh Kumar Vohra, Managing Director and Mr. Manish Gaur, Manager Commercial of Barco Electronics Systems (P) Ltd. 4. Being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inate Bench of this Tribunal, being Final Order No.53815-53817/2014 dated 09.09.2014 in Appeal No. 59749-59751/2013- EX [DB], wherein considering the same issue for the period January, 2011 to October, 2011. It has been held that whenever there is inter unit transfer, it is not a sales transaction and hence sales tax/CST/VAT does not get attracted. It does not mean ipso facto that an exemption fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer is to self or to their Service Department from the 100% EOU. We find that a similar view was taken by another coordinate Bench of this Tribunal (of which one of myself was also a member) in M/s VVF LTD. Vs. CCE reported at 2014 (2) TMI 922 - CESTAT (Mumbai). Accordingly, the appeals are allowed with consequential benefits and the impugned order is set aside. (Operative part of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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