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Issues:
1. Stay of the order of the Collector of Customs and Central Excise (Appeals), Madras regarding the benefit of importation of repaired Decanters without payment of duty under the 100% EOU Scheme. 2. Interpretation of provisions of the Import and Export Policy, 1992-97 regarding eligibility for duty-free import under the 100% EOU Scheme. 3. Examination of the value aspect to determine if the total value of the imported goods, including the repaired Decanters, falls within the overall limit of Rs. 300 lakhs for duty-free import under the scheme. 4. Consideration of the applicability of para 118 and para 172 of the Import and Export Policy, 1992-97 in relation to the eligibility for duty-free import of machinery after repairs abroad for 100% EOU Units. Analysis: 1. The appellant Collector sought a stay of the order allowing the respondent the benefit of importing repaired Decanters without duty payment under the 100% EOU Scheme. The Decanters were initially installed in the appellant's factory before it was certified as an EOU Unit and were later sent abroad for repairs after the unit was declared as a 100% EOU Unit. The issue raised was whether the Decanters, imported long before the unit's EOU status, could be eligible for the EOU Scheme benefit. 2. The Departmental Representative argued that the total value of machinery allowed for import under the 100% EOU Scheme was Rs. 300 lakhs, of which goods worth Rs. 215 lakhs had already been imported. The representative contended that the lower adjudicating authority failed to consider the total value of the repaired Decanters in determining eligibility for duty-free import. Additionally, the representative highlighted the ineligibility of machinery already installed before the unit's EOU status for EOU Scheme benefits under the Import and Export Policy, 1992-97. 3. The respondent's advocate countered by asserting that the lower adjudicating authority had properly analyzed the issue under the Import and Export Policy, 1992-97, concluding that the appellants were entitled to duty-free import of Decanters under the 100% EOU Scheme. The advocate emphasized the need to consider the total value of imported goods, including the repaired Decanters, within the Rs. 300 lakhs limit. The advocate also referenced para 172 of the Policy, allowing duty-free re-import of machinery after repairs abroad for 100% EOU Units. 4. Upon careful consideration, the Tribunal observed that the lower authority had not properly addressed the total value of the imported goods, specifically the Decanters after repairs, in relation to the Rs. 300 lakhs limit for duty-free import under the EOU Scheme. The Tribunal noted the need for a deeper examination of the conflicting provisions of para 118 and para 172 of the Import and Export Policy, 1992-97. Consequently, the Tribunal found a prima facie case for granting a stay of the lower authority's order based on the Department's arguments, pending further examination at the final hearing.
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