2004 (9) TMI 121 - HC - Central Excise

Summary

Issues: Application for review of order directing registration under Central Excise Rules for conversion of unit from 100% EOU to Domestic Tariff Area Unit; Modification of conditions related to deposit amounts demanded in show cause notices.

In this judgment, the court addressed an application for review of an earlier order directing the grant of registration under Central Excise Rules for converting a unit from a 100% Export Oriented Unit (EOU) to a Domestic Tariff Area Unit. The petitioner was required to comply with various conditions, including depositing a specific sum against customs duty. The petitioner sought modification of conditions (iii) to (vii) related to deposit amounts demanded in show cause notices. The court considered a previous order and directed that instead of depositing 10% of the duty amount involved in each show cause notice, the petitioner should deposit a sum equivalent to one per cent of the duty amount over a period of ten months, starting from a specified date. The court modified the order accordingly, specifying the payment schedule for the deposits.

Furthermore, the court highlighted that upon the petitioner's compliance with specified conditions and the deposit of one per cent of the duty amount involved in each show cause notice, the respondents were directed to grant Central Excise registration by debonding within one month. The court clarified that any show cause notice issued within ten months from the judgment date would also require the petitioner to pay one per cent of the duty amount every month for ten months. The court made the rule absolute to the specified extent, with no order as to costs, effectively concluding the matter in favor of the petitioner.