2012 (12) TMI 226 - AT - Central Excise

Calculation of entitlement of DTA sale - 100% EOU - Exim Policy - whether deemed export is equivalent to physical export - held that - Tribunal in its impugned order held that once Development Commissioner giving permission to the appellant, a 100% EOU, to sell goods in DTA up to a specified value. Revenue cannot go beyond the permission and dispute it holding that for fixing the limit only physical exports and not deemed exports should have been taken into account - no merit in the appeal filed by the Revenue and accordingly, reject the same. Decision in GINNI INTERNATIONAL LTD. Versus COMMISSIONER OF C. EX., JAIPUR 2001 (9) TMI 165 - CEGAT, COURT NO. IV, NEW DELHI followed.

Summary

Issues:
1. Whether deemed export is equivalent to physical export for the calculation of entitlement of DTA sale in terms of Exim Policy.

Analysis:
The impugned order in this case was passed following the directions in the remand order of the Tribunal. The Commissioner had dropped the proceedings initiated by a show cause notice, leading to the Revenue filing an appeal. The main issue revolved around whether deemed export should be considered equivalent to physical export for the calculation of entitlement of DTA sale in accordance with the Exim Policy.

The Commissioner based the decision on various precedents, including decisions from the Tribunal, the Hon'ble Supreme Court, and the High Court of Gujarat. The Revenue challenged the order on grounds related to the definition of import and export under the Foreign Trade (Development and Regulation) Act, 1992, and Circular F.No. 305/48/2000-FTT. Additionally, the Revenue cited Tribunal decisions in support of their arguments.

After hearing both parties, the Tribunal analyzed the submissions and noted the conflicting decisions. The Tribunal emphasized the importance of following decisions from higher forums, such as the Hon'ble Supreme Court and the High Court of Gujarat. The Tribunal highlighted the relevance of specific decisions, including those related to the permission granted to a 100% EOU for DTA sales and the consideration of deemed exports in fixing limits.

Ultimately, the Tribunal found no merit in the Revenue's appeal based on the precedent decisions applicable to the case. As a result, the appeal filed by the Revenue was rejected, aligning with the established legal principles and interpretations provided by higher judicial forums.

This detailed analysis of the judgment showcases the thorough consideration of legal precedents and interpretations that guided the Tribunal's decision on the issue at hand.