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TMI Blog2022 (7) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... ly Pharma Options Private Limited, Plot No. J 7, MIDC, Tarapur Industrial Area, Boisar, District Palghar, Pin 401 506 to also pay interest on the above amounts under Section 11AA of the Central Excise Act, 1944; and 3. I impose a penalty of Rs. 3,72,87,926/- (Rupees three crore seventy two lakh eighty seven thousand nine hundred twenty six only) upon M/s Ally Pharma Options Private Limited, Plot No. J-7, MIDC, Tarapur Industrial Area, Boisar, District Palghar, Pin 401 506 under Section 11AC(1)(a) of the Central Excise Act, 1944 and Rule 25(1)(d) of the Central Excise Rules, 2002" 2.1 Appellant is an Export Oriented Unit. It is exporting it goods directly and also through merchant exporters. During course of audit it was noticed that in respect of the exports made through Merchant Exporters certain discrepancies such as on some of the shipping bills in respect of these exported goods, the status of the appellant EOU was not shown, in others, the name of the noticee and its status as an EOU was not mentioned. 2.2 Treating this goods as not export goods for the reasons stated in 2.1, the demand of central excise duty of Rs. 2,61,79,353/-, Rs. 40,26,798/- and Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made can be established for each consignment on the basis of the series of the documents that were prepared for exporting them. In fact in each case proof of export was also submitted to the jurisdictional authority in the manner prescribed. Impugned order does not dispute this fact but only relies on the Board Circular of 1991 to confirm the demands against them. * To this ratio was the Board's Circular number 03/ 91-Cus dated 24.01.1991 and the decisions of the CESTAT in LT Karle & Company, 2007 (2007) ELT 358, PML Industries, 2004 (172) ELT 281, Leela Scottish Lace, 2003 (156) ELT 548, Ikea Trading, 2003 (157) ELT 359. 3.3 Arguing for the revenue learned authorized representative while re-iterating the findings recorded in the impugned order, stated that the * Circular 03/91 Customs dated 24.01.1991, clearly stated that the Name of EOU should have been mentioned in the Shipping Bill and other export documents. * EPCES Circular No.30 dated 12.09.2006 and the DGFT Policy Circular number 19 (RE-2006)/2004-2009 dated 11.09.2006, both of which state that " the shipping bills must indicate the name of both the manufacturer and the third party." The use of the word &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icee was not written on the majority of the export documents. The reliance placed by the noticee on the Board's Circular number 03/ 91-Cus dated 24.01.1991 itself shows abhorrence to this practice and states the procedure to be followed in this situation. It reads thus - "Attention is invited to provisions contained in Chapter-XXII and Chapter-XXIII of Import & Export Policy (April 1990 - March, 1993) in terms of which Third Party Exports have been allowed in the case of 100% EOUS/ units located in FTZS/ EPZS. The said provisions are applicable for exports made from 01.04.1990. The following guidelines are issued for the information/ guidance of all concerned - (i) 100% EQUs/ or FTZ/ EPZ unit may procure export orders from the Third Party (ii) The name of the Third Party may or may not appear on the export documents such as Invoice, Shipping Bill, Bank Certificate etc. but a condition shall be stipulated thereon that all export benefits including CCS will be admissible to 100% EQU/ FTZ unit/EPZ unit only (as the case may be). (iii) At the time of passing of export orders by third party to 100% EOV or EPZ/ FrZ unit, the third party shall give a disclaim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Act, 1944. Having not paid the same, the demands of these unpaid central excise duties of Rs. 2,61,79,353/-, Rs. 40,26,798/- and Rs. 70,81,775/-, as made in the three notices would become determinable and are determined under the provisions of Section 11A(10) of the Central Excise Act, 1944 for being recovered from the noticee also in enforcement of the B-17 Bond. The noticee would also pay interest on these unpaid amounts under Section 11AA of the Central Excise Act, 1944. 11. The CBEC, the EPECS and the DGFT have all laid down the condition of the name and status of the EOU to be mentioned in the shipping documents. The satisfaction thereof, therefore, would treat deemed export benefits for the noticee. Coupled therewith is the fact that the noticee made clearances to the third parties under central excise invoices indicating the DTA sales. In the circumstances, the noticee, being an EOU, has committed default deliberately. The penalty under the circumstances, under Section 11AC(1)(a) of the Central Excise Act, 1944/ Rule 25(1)(d) would become imposable on the noticee. In the circumstances, I do not impose any penalty under Rule 27 of the Central Excise Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;INTERNATIONAL 44/06.11.07 9764781 18 APOPL_045/07 08/DT.15.11.2007 BISHOP PHARMA LAB 45/15.11.07 1234770 19 APOPL/046/07 08/DT.19.11.2007 BDH (T.P.L) 46/19.11.07 992201 20 APOPL/047/07 08/1.22,11.2007 PHAKT OVERSEAS 47/22.11.07 1040000 21 APOPL/048/07 08/DT.25.11.2007 INDO GULF CO. 48/25.11.07 1329155 22 APOPL/049/07 08/DT.29.11.2007 BISHOP PHARMA LAB 49/29.11.07 5866081 23 APOPL/050/07 08/DT.04.12.2007 BISHOP PHARMA LAB 50/04.12.07 302192 24 APOPL/051/07 08/DT.06.12.2007 BDH (T.P.I.) 51/06.12.07 1796193 25 APOPL/052/07 08/DT.20.12.2007 PHAKT OVERSEAS 52/20.12.07 10400001 26 APOPL/053/07 08/DT.21.12.2007 MAK ENTERPRISES 53/21.12.07 619600 27 APOPL/055/07 08/DT.07.01.2008 BDH (T.P.L) 55/07.01.08 1043200 28 APOPL/056/07 08/DT.07.01.2008 BDHT(TPL) 56/07.01.08 10432001 29 APOPL/060/07 08/DT.20.01.2008 PHAKT OVERSEAS 60/20.01.08 1045800 30 APOPL/066/07 08/DT.10.02.2008 PHAKT OVERSEAS 66/10.02.08 745978 31 APOPL/067/07 08/DT.26.02.2008 CIPLA LTD 67/26.02.08 1160000 32 APOPL071/07. 08/DT.15.03.2008 PHAKT OVERSEAS 71/15.03.08 1390929 33 APOPL/073/07 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29/09 10/DT.30.08.09 INDUS PHARMACEUTIC ALS 29/30.08.09 298200 65 APOPL/033/09 10/DT.03.09.09 RIDDHI IMPEX 33/03.09.09 44000 66 APOPL/042/09 10/DT.24.09.09 RIDDHI IMPEX 42/24.09.09 3946000 67 APOPL/051/09 10/DT.15.10.09 RIDDHI IMPEX 51/15.10.09 270000 68 APOPL/056/09 10/DT.28.10.09 RIDDHI IMPEX 56/28.10.09 1530000 69 APOPL/063/09 10/DT.15.11.09 RIDDHI IMPEX 63/15.11.09 1834420 70 APOPL/072/09. 10/DT.03.12.09 INDUS PHARMACEUTIC ALS 72/03.12.09 14933051 71 APOPL/075/09 10/DT.17.12.09 MAXHEAL PHARMACEUTIC ALS 76/17.12.09 158592 72 APOPL/078/09 10/DT.22.12.09 MAXHEAL PHARMACEUTIC ALS 79/22.12.09 6712801 73 APOPL/081/09 10/DT.12.01.10 MAXHEAL PHARMACEUTIC ALS 82/12.01.10 1486080 74 APOPL/082/09 10/DT.14.01.10 MAX PHARMACEUTIC ALS 83/14.01.10 971785 75 APOPL/084/09 10/DT.24.01.10 MAXHEAL PHARMACEUTIC ALS 86/24.01.10 1039512 76 APOPL/085/09 10/DT.24.01.10 MAXHEAL. PHARMACEUTIC ALS 87/24.01.10 797040 77 APOPL/086/09 10/DT.09.02.10 MAXHEAL PHARMACEUTIC ALS 88/09.02.10 968832 78 APOPL/087/09 10/DT.16.02.10 INDUS PHARMACEUTIC ALS 90/16.02.10 4583124 79 APOPL/089/09 10/DT.18.02.10 MAXHEAL P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BLUE MAP PHARMACHEM 540644 Annexure A to Show Cause Notice Dated 06.03.2013 1 APOPL/095/12-13 dated 11.03.2012 Ridhi Impex 095/11-12 dated 11.03.2012 1481230 2 APOPL/006/12-13 dated 19.04.2012 Blue Map Pharmachem 006/12-13 dated 19.04.2012 850500 3 APOPL/007/12-13 dated 19.04.2012 Blue Map Pharmachem 007/12-13 dated 19.04.2012 675000 4 APOPL/011/12-13 dated 08.05.2012 Maxheal Laboratories 011/12-13 dated 08.05.2012 356400 5 APOPL/021/12-13 dated 31.05.2012 Maxheal Laboratories 21/12-13 dated 131.05.2012 956160 6 APOPL/025/12-13 dated 18.06.2012 Cadila Healthcare Ltd 025/12-13 dated 18.06.2012 443700 7 APOPL/032/12-13 dated 18.07.2012 Blue Map Phármachem 032/12-13 dated 18.07.2012 1296000 8 APOPL/043/12-13 dated 27.08.2012 Blue Map Pharmachem 043/12-13 dated 27.08.2012 3552000 9 APOPL/048/12-13 dated 17.09.2012 Pravil Laboratories Ltd 048/12-13 dated 17.09.2012 2229000 10 APOPL/050/12-13 dated 26.09.2012 Cadila Healthcare Ltd 050/12-13 dated 26.09.2012 596904 11 APOPL/051/12-13 dated 27.09.2012 Maxheal Laboratories 051/12-13 dated 27.09.2012 212800 12 APOPL/052/12-13 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.07.13 1372680 15 APOPL/030/13-14 Dt.21.07.13 Cadila Healthcare Ltd. 032/13-14 Dt. 21.07.13 1652710 16 APOPL/032/13-14 Dt.28.07.13 Cadila Healthcare Ltd. 034/13-14 Dt.28.07.13 1057596 17 APOPL/034/13-14 Dt.08.08.13 Maxheal Pharmaceuticals 036/13-14 Dt.08.08.13 652800 18 APOPL/039/13-14 Dt.25.08.13 Cadila Healthcare Ltd. 041/13-14 Dt.25.08.13 132804 19 APOPL/032/13-14 Dt.28.07.13 Cadila Healthcare Ltd. 034/13-14 Dt.28.07.13 1057596 20 APOPL/034/13-14 Dt.08.08.13 Maxheal Pharmaceuticals 036/13-14 Dt.08.08.13 652800 21 APOPL/039/13-14 Dt.25.08.13 Cadila Healthcare Ltd. 041/13-14 Dt.25.08.13 132804 22 APOPL/042/13-14 Dt. 19.09.13 Maxheal laboratories 046/13-14 Dt.19.09.13 5210400 23 APOPL/043/13- 14 Dt. 19.09.13 Maxheal Labortories 047/13-14 Dt.19.09.13 481160 24 APOPL/045/13-14 Dt.22.09.13 Cadila Healthcare ltd. 049/13-1 1.22.09.13 2684550 25 APOPL/046/13-14 Dt.22.09.13 Maxheal Pharmaceuticals 050/13-14 Dt.23.09.13 797880 26 APOPL/048/13-14 Dt.03.10.13 Maxheal Labortories 056/13-14 Dt.03.10.13 760320 27 APOPL/049/13-14 Dt. 14.10.13 Maxhe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant exporter availing the undue export incentive for export of goods made under the EOU scheme through the merchant exporter. The merchant exporter informed the jurisdictional Commissioner of Central Excise-about its not availing the DEPB benefit. The related AR-4s covering the consignments exported under the relevant shipping bills clearly indicated that the goods are manufactured by an EOU. It cannot be held that the EOU was trying to avail any undue benefit. In any case, it is for the jurisdictional Development Commissioner to monitor compliance with the statutory provisions by the EOU. The Development Commissioner will evaluate the performance of the EOU as regards the achievement of export obligation and NFEP/EP by it. Liabilities of the EOU in this regard are secured by bonds executed by it with the department. The same authority, namely the DGFT, issues the DEPB book. If DEPB benefit is allowed in respect of the impugned exports to M/s. Eastern Exports Chennai, the appellants will not be allowed benefits under the E.O.U. scheme on account of the same exports by the DGFT. This safeguard is behind issue of the Circulars referred to. The Commissioner would not have demanded the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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