9911796707
TMI Blog2006 (6) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... demand has been confirmed on Rosin Coated Sand imported by the applicants herein for making moulds and cores which are then used for manufacture of castings and which castings are entirely exported by the applicants which is an 100% EOU. Excise duty demand has been confirmed on RCS procured indigenously for the same purpose. According to the adjudicating authority, as per Clause 7 of Notification 53/97-Cus., dated 3-6-1997 and Clause 5 of Notification 1/95-CE, dated 4-1-1995, since burnt sand which arises in the course of manufacture of casting, is not excisable, the applicant are required to pay customs duty on imported RCS and excise duty on indigenously procured RCS. 2. We have heard both sides. The relevant clause of the above Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d herein shall also apply to the said goods used for the purposes of production manufacture processing or packaging of articles in a user industry and such articles (including, rejects, waste scrap and remnants arising out of such production, manufacture, processing or packaging of such articles) even if not exported out of India are allowed to be cleared outside the user industry under and in accordance with the Export Import Policy and subject to such other limitations and conditions as may be specified in this behalf by the said board or the said committee, as the case may be, on payment of appropriate duty of excise or where such goods are cleared to the warehouse appointed or registered under notification of Govt. of India in the Minis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case the goods which are result of manufacture, all castings and not burnt sand. Therefore, the non-excisability of burnt sand is not relevant for the purpose of holding that the applicants are required to pay either custom duty in imported RCS or excise duty on indigenously procured RCS. We find prima facie support from our view in the decision of Hanil Era Textile Ltd. - 2004 (171) E.L.T. 33 as affirmed by the Apex Court in 2005 (180) E.L.T. A44. 4. In the light of above, we are of the view that the applicants have made out a prima facie case for waiver of pre-deposit and hence we dispense with the pre-deposit of customs duty and excise duty and the penalties imposed under the provisions of both the above enactments and stay rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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