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TMI Blog2007 (4) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 31-3-2003 were removed to granite quarries for raising granite, which was then taken to the factory for the manufacture of granite blocks, monuments etc. When the operations at the quarry were over, the capital goods were shifted to another quarry for similar operations. The operations at each quarry were undertaken by the appellants under an agreement entered into between them and the quarry-owner. This agreement conferred on the appellants the right to raise granite for a determinate period against payment of a royalty to the quarry-owner. The movement of the capital goods from EOU to quarry and from quarry to quarry were monitored by the department. These movements were made after obtaining the requisite approval of the jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Jiu v. Bar Dass Dey and Co. and Ors. [AIR 1979 Supreme Court 1669] and accordingly it should have been held that the requirement of para 4(i) of the Notification had been fulfilled; and (c) once the requisite permission of the departmental authorities was obtained for removal of the capital goods from EOU to quarry as also from quarry to quarry, it was not open to them to raise such a demand of duty. Contextually, learned Counsel fairly points out that, on a set of facts by and large similar to the facts of this case, this Bench denied waiver and stay in G.T.P. Granites v. Commissioner of Central Excise, Salem [2007 (209) E.L.T. 106 (Tri.-Chennai)]. However, it is the case of the learned Counsel that the arguments so far advanced by him i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble Supreme Court s judgment cited by learned Counsel, we note that their lordships held that a mining lease may not meticulously and strictly satisfy all the characteristics of a lease as defined in the Transfer of Property Act and that the same has always been regarded as a lease in this country in the legally accepted sense. Against this background, we have perused the relevant agreements and, prima facie, it appears to us that the transaction embodied therein partakes the character of mining lease . In this view of the matter, we take the prima facie view that the requirement of para 4(i) of the Notification stood satisfied in this case and there was no cause of action for any demand of duty on the capital goods. The case putforth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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