TMI Blog2022 (2) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... o duty-free procurement of goods intended for use in providing eligible services. N/N. 34/2006-CE dated 14th June 2006 does not provide for extending the extension of the benefit of exemption to goods manufactured by 100 % export oriented units (EOU) . Consequently, the clearance of goods has been effected by the appellant without payment of applicable duties. Considering that the procurement of raw materials both imported and domestic had been without payment of duty, against notification no. 52/2003-Cus dated 31st March 2003 and no. 22/2003- CE dated 31st March 2003 issued under Customs Act, 1962 and Central Excise Act, 1944, the clearance of goods against debit of scrip is legalized only by recovery of the duties so forgone w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 112 of Customs Act, 1962 and rule 25 of Central Excise Rules, 2004, had been rejected. These detriments were the consequence of the finding that manufactured goods had been cleared to domestic entities without payment of duty for which the debit of scrip issued to the recipients under the served from India scheme (SFIS) of the Foreign Trade Policy does not substitute and, thereby, rendering the duties of customs foregone on imported raw materials and duties of central excise foregone on domestic procurement of raw materials as liable to be recovered under the respective statutes. 2. The appellant is licensed under 100% export oriented unit (EOU) scheme of the Foreign Trade Policy (FTP) and permitted to import/procure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is an entirely different context from the present dispute. 5. We find that the appellant was required to discharge duties of central excise in accordance with proviso to section 3 of Central Excise Act, 1944 on clearance of goods into the domestic tariff area (DTA) and that obligation thereto was construed by them as having been duly complied with on supply to holders of scrips entitled to duty-free procurement of goods intended for use in providing eligible services. We find that the empowerment under which notification no. 34/2006-CE dated 14th June 2006 was issued 5A. Power to grant exemption from duty of excise.- (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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