2005 (6) TMI 141 - AT - Central Excise

Summary

Issues:
- Contesting charges on cost recovery basis versus MOT basis for a 100% EOU.

Analysis:
The judgment pertains to an appeal against an order directing the appellants to pay charges on a cost recovery basis instead of an MOT basis. The tribunal noted that the appellants, being a 100% EOU, were required to pay charges on a cost recovery basis only if a Customs Officer was posted in their unit for supervision, as per the terms of the bond. However, it was established from the record that no Customs Officer was appointed in their factory during the disputed period. As a result, the tribunal concluded that the Revenue could not claim charges on a cost recovery basis and that the appellants had already paid charges on an MOT basis for the relevant period. The tribunal also highlighted that charges on an MOT basis were claimed for the subsequent period, further supporting the appellants' position. The tribunal distinguished the present case from the case of Kapoor International v. CCE, Faridabad, where supervision charges were found payable on an actual basis due to provided facilities, which did not apply in the current scenario. Instead, the tribunal found the case of the appellants aligned with the law laid down in G.T. Cargo Fittings India (P) Ltd. v. CC, New Delhi, where the demand for payment of charges on a cost recovery basis from a 100% EOU was set aside.

In conclusion, the tribunal set aside the impugned order and allowed the appeal of the appellants with consequential relief, in accordance with the law.