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2007 (10) TMI 474 - AT - Central ExciseDemand - goods cleared for export - Non-fulfillment of procedure under N/N. 43/2001-C.E. read with Board s Circular No. 106/17/95/CEX dated 2-3-95.
Issues:
1. Clearance of goods without payment of duty under Notification No. 43/2001-C.E. (N.T.) 2. Alleged non-compliance with the prescribed procedure 3. Appeal against the Commissioner (Appeals) order Issue 1: Clearance of goods without payment of duty under Notification No. 43/2001-C.E. (N.T.) The assessee had cleared S.S. Flats without duty payment to M/s. Rama Sheets Pvt. Ltd. for conversion into S.S. Cold Rolled Pattas on job work basis. These pattas were further cleared without duty payment for manufacturing S.S. Utensils for export. The assessee had obtained necessary permission from the Deputy Commissioner as per the notification and circulars. Issue 2: Alleged non-compliance with the prescribed procedure The proceedings were initiated against the assessee for not following the procedure under Notification No. 43/2001-C.E. (N.T.). The original adjudicating authority confirmed the demand, but the Commissioner (Appeals) overturned this decision, noting that the goods were removed under bond with department permission and cleared for export, which does not attract duty as per relevant case laws and circulars. Issue 3: Appeal against the Commissioner (Appeals) order The Revenue appealed the Commissioner (Appeals) decision, arguing that the proper procedure was not followed. However, since the final products were exported, the Tribunal applied the law established in the case of Alpha Garments, where duty exemption was granted for exported goods. The Tribunal upheld the Commissioner (Appeals) decision, rejecting the Revenue's appeal. This judgment clarifies the clearance of goods without duty payment under a specific notification, the importance of following prescribed procedures, and the implications of exporting goods on duty liability. The decision emphasizes compliance with regulations and the relevance of case laws in determining duty obligations.
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