2003 (1) TMI 169 - AT - Central Excise

Summary

Issues:
- Applicability of Rule 13 of the Central Excise Rules, 1944 to a 100% Export Oriented Undertaking.

Analysis:
The appeal in question raised the issue of whether the provisions of Rule 13 of the Central Excise Rules, 1944 are applicable to a 100% Export Oriented Undertaking. The Appellant, a 100% Export Oriented Unit manufacturing shoe components, had followed the procedure under Rule 13(1)(b) and Notification No. 47/94-NT to supply goods to manufacturer exporters. The Commissioner demanded Central Excise duty and imposed a penalty, claiming that Rule 13 does not apply to 100% Export Oriented Units. The Appellant argued that all provisions of the Central Excise Act and Rules are generally applicable unless specifically excluded. The Departmental Representative contended that 100% Export Oriented Units are governed by Chapter V-A of the Central Excise Rules, and Rule 13 would not be applicable to them. The Tribunal considered the submissions and held that Rule 13 and the notification issued under it do not bar the removal of goods by a 100% EOU to a manufacturer exporter without payment of duty, as supported by Rule 100H of the Central Excise Rules. The Tribunal also noted that the proviso to Section 5A of the Central Excise Act does not apply in this case, and thus, the benefit of Notification No. 47/94 was deemed available to the Appellants. Consequently, the appeal was allowed, and the cross objection was disposed of accordingly.