9911796707
|
Home
Issues involved: Appeal against demand of duty and penalty u/s 114A of the Customs Act, 1962 for import of capital goods by a 100% E.O.U. for demonstration purpose.
Summary: The appellant, a 100% E.O.U., imported capital goods for demonstration purpose. The department alleged the goods were not intended for manufacturing finished goods for export but for demonstration/reverse engineering. Proceedings were initiated for duty demand and penalty imposition. The lower authority confirmed the demand and penalty. The appellant appealed, claiming eligibility for exemption u/s 52/2003-Cus as goods were for demonstration purpose and not cleared for home consumption. The Tribunal examined Notification No. 52/2003-Cus providing exemption to 100% EOU for imported goods. The department contended goods were not covered under Annexure II, requiring proof of installation or use within a specified period. The appellant submitted certificates confirming use of imported goods for product diversification. As a 100% EOU, they satisfied conditions of the Notification. Since goods were not cleared for home consumption and within warehousing period, proceedings were deemed premature. The impugned order was set aside, and the appeal allowed. Separate Judgement: None.
|
