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2009 (3) TMI 363 - AT - Central ExciseRemoval of goods in DTA - The Municipal Authorities removed a Loader from the 100% EOU, during ownership of previous person towards dues of Property tax. - There is no dispute that the Loader removed from the 100% EOU has been restored to the unit Transfer of LOP from previous owner to present owner allowed by Development Commissioner and EOU status continued Loader continued to be used for relevant activity - The Loader which was obtained on concessional rate of duty was temporarily under detention with the Municipal authorities. Now that the same is restored to the 100% EOU, there is no merit in demanding any duty on them Assessee s appeal is allowed
Issues: Duty demand on a Loader removed from a 100% EOU
Analysis: The case involved the appellant, M/s. INVENTAA Chemicals Ltd., taking over a 100% EOU from M/s. Sugam Agro-Tech Ltd. The Municipal Authorities removed a Loader from the EOU towards property tax dues. The Deputy Commissioner confirmed a duty of Rs. 1,65,118 on the appellant. The Commissioner (Appeals) upheld this decision. However, the appellant argued that they paid the dues to the Municipality, who returned the Loader. The Development Commissioner approved the transfer of LOP to the appellant, and all relevant documents were submitted. The appellant contended that the Loader was necessary for their 100% EOU's activities of producing and exporting Button Mushrooms. As the Loader was restored and required for their operations, the duty demand was deemed unjustified. The Tribunal acknowledged the restoration of the Loader and its essential role in the EOU's functioning, leading to the appeal being allowed with consequential relief. Conclusion: The judgment centered on the duty demand for a Loader removed from a 100% EOU. It highlighted the appellant's acquisition of the EOU, the removal and subsequent return of the Loader by the Municipality, and the Loader's significance for the EOU's operations. The Tribunal considered the restoration of the Loader and its essentiality for the EOU's activities, ultimately setting aside the duty demand and allowing the appeal with consequential relief.
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