TMI Blog2003 (7) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... they executed B-17 bond and produced the bank guarantee, which was accepted by the Deputy Commissioner of Central Excise on 7-11-2002. Vide letter dated 19-12-2002, they applied to the Development Commissioner for advance DTA permission for clearance of finished goods manufactured by them in DTA, in terms of Para 6.8 of the 2002-2007, EXIM Policy and Para 6.8 of the Handbook of Procedures, giving details of the products to be manufactured and their value, as well as details of items proposed to be sold in DTA and the value thereof. They commenced trial production in December, 2002. By letter dated 24-2-2003, the Development Commissioner SEEPZ permitted the appellants to make DTA sales of the goods manufactured as trial production and the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had stated that the ex-factory price of the production for the quarter ending 31-3-2003 will be Rs. 47 crores and the duty liability on DTA clearances will be Rs. 23.5 crores, whereas in their letter to the Assistant Commissioner seeking issue of licence under Sections 58 and 65 of the Customs Act, 1962, they had declared requirement of raw materials valued at only Rs. 8.5. crores in the quarter ending 31-12-2002. The notice was adjudicated by the Commissioner who held that the appellants were not entitled to exemption under Notification No. 2/95, dated 4-1-1995, as the entitlement accrual was not according to the expected production and further, the plant and machinery during the first financial year was not adequate and hence, the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being cleared under Paragraph 6.8 of the Export and Import Policy, for home consumption from the unit does not exceed 50% of the free on board value of export made during the year (starting from 1st April of the year and ending with 31st March of next year) by the said unit; and (c) the balance of the production of the goods which are similar to such goods under clearance for home consumption, is exported out of India or disposed of in terms of Paragraph 6.9 of the Export and Import Policy." 5. According to the Revenue Clauses (a), (b) and (c) of the third proviso to the Notification have been contravened as :- (a) No goods have been exported by the appellants and therefore, similarity of the goods being cleared for home cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccruable on the exports envisaged in the first year shall be permitted and such sale shall adjusted against the subsequent entitlements in a maximum period of two years. However, drugs and pharmaceuticals units can make advance DTA sale of the production on the exports envisaged in the first two years adjustable against subsequent entitlements within a maximum period of three years from the date of commencement of production by the unit. The Unit shall be required to execute a bond with the Assistant Commissioner Customs/Central Excise concerned to cover the difference between the amount of duties paid on the advance DTA sale and the full duties applicable on such goods". 7. The Policy thus permits clearance of goods by 100% EOU to DTA in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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