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TMI Blog2003 (10) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned Advocate, submitted that the Appellants company is a 100% Export Oriented Unit (EOU), manufacturing various types of yarn; that during the relevant period, they were permitted to clear their final products in Domestic Tariff Area (DTA) up to 50% of the value of exports made in previous year; that besides this they were also permitted to clear 5% of waste, scrap and rejects in DTA over and above limit of 50% of the final product; that as per Appendix 42 of the Export Import Policy, 1997-2002, 100% Export Oriented Units are at liberty to adopt quarterly/half yearly/yearly basis for clearing the goods in DTA; that they were working under quarterly basis scheme and clearing their final goods in DTA on the basis of permission obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in 1999-2000 were more than 50% of FOB value of exports in the previous year; that Para 9.9(b) of the Policy provides for DTA sales upto 50% of the FOB value of the Export and it does not anywhere specify that DTA entitlement is to the extent of 50% of the FOB value of exports made in the previous year; that accordingly, the manner of calculation of excess DTA clearance is wrong. Finally, he submitted that Para 9.9(a) of the Policy specifically provides that sales of rejects above 5% should be accounted towards DTA sales entitlement under Para 9.9(b); that this clearly goes to show that rejects may be sold in the Domestic Tariff Area up to 5% separately; that similarly Para 9.30(a) of Handbook of Procedures provides that waste and scrap u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit. As no stock of waste/rejects was available, the clearance of the same cannot be allowed over and above the limit of 50%; that in absence of any record, these goods are to be treated as goods of good quality and not waste/rejects. In reply, the learned Advocate submitted that the Department has given them the permission to clear the rejects on the basis of details given by the Superintendent Incharge under 100% EOU. In view of this the department cannot claim that goods cleared by them are not rejects but goods of good quality. He also mentioned that invoices were marked as rejects . 5. We have considered the submissions of both the sides. Para 9.9(b) of the Export-Import Policy also provides for DTA sales up to 50% of the FOB value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NEPZ. In the present matter all the permissions in question had been granted by January, 2000 and not thereafter. The Development Commissioner has also specifically mentioned in the said letter that in view of the above, DTA sales entitlement issued in the past are not being reviewed . We, therefore, hold that the clearance having been effected as per the permission granted by the competent Authority that is Development Commissioner, the Revenue cannot demand the duty on the ground that the entitlement was required to be restricted to 50% of the FOB value of the physical export only. For the same reason the Revenue can also not claim that they have cleared their final goods in DTA in excess of 50% of FOB value of the export made during th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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