2013 (3) TMI 528 - AT - Customs

Cut Flowers cleared to DTA - whether liability to customs duty arises - assessee is a 100% EOU engaged in the manufacture of Fresh Cut Flowers falling under Chapter Heading N. 0603.10 of schedule to Customs Tariff Act, 1985 - Held that - As decided in L.R.Brothers Indo Flora Ltd. Vs. Commissioner of Customs, Meerut (2008 (7) TMI 288 - CESTAT, NEW DELHI) after taking into consideration the earlier decision of the Cosco Blossoms 2003 (12) TMI 114 - CESTAT, NEW DELHI DTA clearance of cut-flowers by 100% EOU would attract customs duty in an amount equal to customs duty chargeable on import of such cut-flowers - against assessee.

Summary

Issues: Commission issue involved

Issue 1: Respondent's absence during proceedings
The judgment notes that despite notice, the Respondent did not appear during the proceedings, with the notice being returned as "company close." Due to this, the appeals and Cross Objections were considered for disposal in the absence of the Respondent.

Issue 2: Classification and duty liability of Cut Flowers
The case involved a 100% Export Oriented Unit (EOU) manufacturing Fresh Cut Flowers, which were cleared to the Domestic Tariff Area (DTA). The Commissioner (Appeals) had ruled that the cut flowers cleared to DTA by the EOU were not subject to customs duty, citing a previous Tribunal decision. However, another Tribunal decision in a different case held that such clearances would attract customs duty equivalent to that on imported cut flowers. The Tribunal applied this second decision to the present case, setting aside the earlier ruling and allowing the appeals filed by the Revenue.

In conclusion, the judgment addressed the absence of the Respondent during the proceedings and the conflicting Tribunal decisions regarding the customs duty liability on cut flowers cleared to the Domestic Tariff Area by a 100% EOU. The decision favored the Revenue, overturning the earlier ruling and holding that customs duty would be applicable on such clearances.