2011 (3) TMI 1743 - HC - Central Excise

Summary

Issues involved: Challenge to order of Appellate Committee dismissing appeal against order-in-original regarding clearance of cotton yarn in Domestic Tariff Area (DTA) by a 100% Export Oriented Unit (EOU).

Details of the judgment:

Issue 1: Challenge to order of Appellate Committee dismissing appeal against order-in-original dated 8th June, 2009.

The Petitioner, a 100% EOU, sought permission to clear cotton yarn in DTA. Development Commissioner granted permission up to &8377; 12.64 crores. Subsequently, a show cause notice was issued seeking to recover excise duty on goods cleared in DTA sale. Adjudication order confirmed demand and imposed penalty. Appeal was dismissed by the Appellate Committee on 8th September, 2010. The present Petition challenges this order.

Issue 2: Application of precedent from a similar case.

In a previous case (Writ Petition No. 1718/2003), the Court held that once permission is granted for DTA sale and goods are sold accordingly, the Development Commissioner cannot review his own order without specific power to do so. The issues raised in the present petition are similar to the previous case, where the Commissioner sought to rectify his order after implementation, without any fraud or misrepresentation by the Petitioner.

Decision:

The impugned order-in-original dated 8th June, 2009 and the order of the Appellate Committee dated 8th September, 2010 are quashed and set aside. The rule is made absolute with no order as to costs.