2010 (1) TMI 468 - AT - Central Excise

EOU - The appellant is an EOU which received the impugned raw material under Notification No. 22/2003-C.E. duty free against CT-3 certificate. Condition (6) of the Notification required the appellants to follow the procedure contained in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Held that - contention by department regarding condition No. 8 of Notification not relevant and in any case, same provided without prejudice to condition no.6, which was followed by appellant. No duty demand sustainable.

Summary

The Appellate Tribunal CESTAT Bangalore ruled in favor of the appellant, an EOU, who returned surplus raw materials duty-free to the original supplier as per the Central Excise Rules. The tribunal found that no duty demand can be sustained as the appellant followed the conditions of the notification and rules. The impugned order was set aside, and the appeal was allowed.