9911796707
TMI Blog2003 (10) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... s confirmed the following demands and imposed penalties as under :- (1) Central Excise duty of Rs. 21,54,92,842/- on a quantity of 3,35,632.418 kms of optical fibres manufactured in the 100% EOU unit of the applicants (this unit was set up in March, 2001) cleared clandestinely to their DTA unit (set up in 1993 and in 1995) and merged in a single DTA unit (in January, 1998) for further clearance to domestic market. (2) Central excise duty of Rs. 51,69,39,050/- on a quantity of 6,35,625.7 kms of optical fibres manufactured in the 100% EOU unit and clandestinely cleared to the domestic market under the invoices to the DTA to show as if the same were manufactured in the DTA unit; (3) Central Excise duty of Rs. 21,63,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944, which provides that the Central Excise duty leviable on goods manufactured by 100% EOU and brought to any other place of India shall be the amount equal to the aggregate of the duties of Customs which would be leviable under the Customs Act, 1962 or any other law for the time being in force. Since the optical fibres fell for classification under Chapter Heading 9001.10, duty for the period up to 1-3-2002 has been levied at the rate of 35% BCD + 16% CVD + 4% SAD aggregating 62.864% and for clearances effected subsequent to 1-3-2002, the rate of duty applied is 30% BCD + 16% CVD + 4% SAD aggregating to 56.832%. The Commissioner has rejected the claim of the company that the rate of duty payable and which has been paid is only 16% CED u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. The ld. Counsel for the Revenue also submits that as per Appendix 14-I-L of the Exim Policy prescribing guidelines for exit of EOU unit, the unit will continue to be treated as EOU till the date of final exit order. However, we note that out of the total duty demand of approximately Rs. 79 crores, waiver of pre-deposit of which is sought by the applicants, Rs. 10 crores stands paid as excise duty at the rate of 16%. A further sum of Rs. 3 crores has been paid by the applicants at the stage of investigation. A Bank Guarantee covering Rs. 11.74 crores has been furnished and continues to be in force under direction of the Bombay High Court in its order dated 13-8-2003 in W.P No. 5884 of 2002 directing the guarantee to be in force and s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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