2011 (7) TMI 211 - AT - Central Excise

100% EOU - The appellant s contention that 50% of actual export as also deemed export, have to be taken into consideration for arriving at their eligibility of clearance in DTA - the reference to the status of deemed exports and receipt of payments in foreign exchange etc. was the basis for arriving at the finding that deemed exports have to be taken into consideration, while adjudging the 50% eligibility of DTA clearances - It is not necessary for the adjudicating authority to satisfy the factual aspects of the reasoning adopted by the Tribunal, in each and every case - Appeal is rejected

Summary

Issues: Entitlement of 100% EOU to clear final products in DTA, consideration of deemed exports for eligibility of DTA clearances, applicability of Tribunal's decision in Amitex Silk Mills case, requirement of payment in foreign exchange for deemed exports.

In this case, the main issue revolves around the entitlement of a 100% Export Oriented Unit (EOU) to clear final products in the Domestic Tariff Area (DTA). The dispute arises from the contention between the Revenue, which argues that only 50% of actual exports can be cleared in DTA, and the appellant, who asserts that both 50% of actual exports and deemed exports should be considered for determining eligibility for DTA clearances. The Commissioner (Appeals) ruled in favor of the appellant, citing the Tribunal's decision in the case of Amitex Silk Mills Pvt. Limited vs. CCE, Surat 2006 (194) ELT 344 (Tri).

The Revenue, while not disputing the applicability of the Tribunal's decision in the Amitex Silk Mills case, raised a concern that the decision was based on the premise that deemed exports possess all the characteristics of actual exports, including payment in foreign exchange. The Revenue argued that since the Commissioner (Appeals) did not assess the receipt of payment in foreign exchange, relying on the Tribunal's decision was inappropriate.

Upon examination, the Tribunal found no merit in the Revenue's argument. The Tribunal emphasized that once a decision is made based on the reasoning adopted by the Tribunal, it becomes binding as law. It clarified that the factual aspects supporting the Tribunal's reasoning need not be re-evaluated in each case. Additionally, the Tribunal noted that the decision in the Amitex Silk Mills case did not hinge on whether payments were received in foreign exchange. As such, the Tribunal upheld the Commissioner (Appeals)'s decision to follow the precedent set by the Amitex Silk Mills case, ultimately rejecting the Revenue's appeal.