TMI Blog2003 (2) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... ds valued at Rs. 4,618.27 lakhs during the financial year 1999-2000 and accordingly, they were eligible to sell the goods into Domestic Tariff Area to the extent of Rs. 2,309.14 lakhs during the financial year 2000-2001; that they cleared the cotton yarn valued at Rs. 21.55 crore during the financial year 2000-2001 on payment of duty under Notification No. 8/97-C.E., dated 1-3-97; that they also cleared during the same period the cotton waste valued at Rs. 6.5 crore (approximately) under Para 9.20 of the EXIM Policy claiming the exemption from duty under Notification No. 6/97-C.E., dated 1-3-97; that the Commissioner of Central Excise, under impugned order has demanded the Central Excise duty and imposed a penalty on the ground that the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is apparent from the Central Excise Division's letter dated 7-3-2001 to the Range Superintendent wherein it is mentioned that the sale of waste is allowed under Para 9.30 of Hand Book of Procedure. The learned Advocate also mentioned that Para 9.20 of the Policy was amended with effect from 1-4-2001 and overall ceiling of 50% FOB value was also made applicable to scrap/waste/remnant; that there is no provision made in the amended Policy to give effect to it retrospectively; that the Commissioner in the impugned order has relied upon the Board's Circular No. 30/99-Cus., dated 25-5-99 wherein it is mentioned that DTA sale on all accounts for all sectors shall not exceed 50% of the FOB value of previous financial year's export; that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not two different terms. 4. We have considered the submissions of both the sides. Para 9.9(b) of the EXIM Policy regarding DTA sale reads as under : "DTA sales up to 50% of the FOB value of exports may be made subject to payment of applicable duties and fulfilment of minimum NFEP prescribed in appendix I of the policy. No DTA sale shall be permissible in respect of motor cars, alcoholic liquors and such other items as may be stipulated by Director General of Foreign Trade by a Public Notice issued in this behalf." Para 9.20 of the Policy deals with the disposal of the scrap, waste and remnants which reads as under :- "Scrap/Waste/Remnants arising out of production process or in connection therewith may be sold or disposed of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under DTA sale entitlement under Para 9.9(b). A separate Para 9.20 deals with the disposal of the scrap, waste and remnants and during the relevant period there was no mention in the Para 9.20 that the sale of waste would also be counted against the DTA sale entitlement under Para 9.9(b) of the Policy. Such requirement was brought into effect only with effect from 1-4-2001 when Para 9.20 reads as under "Scrap/waste/remnants arising out of production process or in connection therewith may be exported or may be sold in the DTA on payment of duties as applicable under Paragraph 9.9(b) of the Policy within the overall ceiling of 50% of the FOB value of exports but shall not be subject to achievement of NFEP. Sale beyond this limit shall be o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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