TMI Blog2008 (7) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (T) Shri J.M. Sharma, Consultant, for the Appellant. Shri R.C. Sankhla, DR, for the Respondent. [Order per : Rakesh Kumar, Member (T)] - The appellant is a 100% EOU in Flori Culture Sector and they had started commercial production of cut-flowers for export in February 1996. For production of cut-flowers they had imported a number of items of capital goods, inputs and consumables free of Custom Duty under Notification No. 126/94-Cus., dated 03-6-94 and beside this, had also acquired some indigenously manufacture capital goods/inputs free of Central Excise Duty under Notification No.136/94-CE. As per the 1997-2002 EXIM Policy, the 100% EOU's in floriculture, agriculture, horticulture, pisi-culture, poultry, sericulture e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout payment of any duty. While according to the Revenue these clearances would attract Custom Duty chargeable on inputs gone into the production of such flowers, in an amount equal to the Custom Duty chargeable on the import of such flowers. In other words, according to the Revenue, these DTA clearances would attract Custom Duty in an amount equal to the Custom Duty chargeable on the import of such flowers. The Additional Commissioner of Central Excise, Customs, Meerut-I, vide order-in-Original dated 18-10-01 confirmed the duty demand of Rs. 9,98,177/- against the Appellant under Section 28 (2) of Customs Act, 1962 along with interest on this duty @ 24% under Section 28AB of the Act and besides this, also imposed penalty of equal amount u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the same would attract only the Central Excise Duty. 4. Shri R.C. Sankhla, the learned Departmental Representative made the following submissions:- (1) All the DTA clearances of cut-flowers made by the appellant were in contravention of the provisions of the EXIM Policy, as the appellant never achieved positive Net Foreign Exchange Earning and neither any quota for DTA clearances had been fixed by the Development Commissioner nor any permission for DTA clearances had been granted to them by the Development Commissioner. (2) In terms of the provisions of Clause A of para 3 (a) of the exemption Notification No. 126/94-CUS, which was in force, during the period of dispute, in respect of DTA clearances of non-excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption contained herein shall also apply to the said goods which on importation into India are used for the purposes of production, manufacture or packaging of articles and such articles (including rejects, waste and scrap material arising in the course of production, manufacture or packaging of such articles), even if not exported out of India, are allowed to be sold in India under and in accordance with the Export-Import Policy and in such quantity and subject to such other limitation and conditions, as may be specified in this behalf by the Development Commissioner, on payment of duty of excise leviable thereon under Section 3 of the Central Excise and Salt Act, 1944 (1 of 1944) or where such articles (including rejects, waste and scr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been paid, but for the exemption under this notification, shall be payable at the time of clearance of such articles." 5.2. From reading of para 3 (a) of the Notification No. 126/94-CUS. as it existed during the period of dispute i.e. during period prior to 18-5-01, and as it existed during period w.e.f. 18-5-01, it is clear that during the period of dispute, the notification contained a machinery provision for determining, the Custom Duty chargeable on the inputs used in the production of non-excisable goods cleared to DTA and as per this machinery provision, the duty was to be in an amount equal to the Custom Duty chargeable on the finished goods, as if imported, as such. However, after the amendment of this Notification w.e.f. 18- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Custom Duty leviable on such articles, as if imported, as such", had not been considered. If the Appellant's view accepted, the words "in an amount equal to the Custom Duty leviable on such articles, as if imported, as such" would become redundant. It is well settled principle of interpretation of statute that a statute has to be construed without adding any words to it or subtracting any words from it and an interpretation which makes a part of the statute redundant has to be avoided. 7. In view of the above discussion, we hold that the Custom Duty has been correctly charged in respect of DTA clearances of the cut-flowers and as such we find no infirmity in the impugned order. The appeal is accordingly dismissed. (Pronounced in ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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