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TMI Blog2010 (5) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... te, for the Assessee. [Order]. This revision application has been filed by the applicant M/s. JRE Valves and Pumps Pvt. Ltd., Colmbatore against the order-in-appeal No. 70, 71, 72/2008 dated 30-4-08 passed by the Commissioner (Appeals) Central Excise, Coimbatore. 2. Brief facts of the case are that the applicant has functioned as Central Excise Registrant (DTA Unit) till 10-9-06 for the manufacture and clearance of excisable goods. Then, they had obtained permission vide Green Card No. 1526/MEPS dated 11-5-06 (valid upto 10-5-2011) from the Madras Export Processing Zone (MEPS) Chennai, to convert this DTA Unit into a 100% EOU. On their request, they had also been granted with a Customs Licence No. 006/2006- Cus., dated 11-9-06 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the claim for Rs. 3,88,932/-) (iv) After due processes of law, the lower authority had, as proposed in the SCNs rejected the rebate claims vide the impugned orders. The details are as below : Sl. No. Order-in-Original C. No./Date Duty Rs. 1. C. No. V/73/31/200/06-RB dated 31-12-07 3,12,458/- 2. C. No. V/73/31/200/06-RB dated 31-12-07 2,62,017/- 3. C. No. V/84/31/1/07-RB dated 31-12-07 3,88,932/- 2.2 Aggrieved by this, the applicant have preferred three appeals with the Commissioner (Appeals) who after due process of law rejected the appeals. 3. Being aggrieved by the impugned order-in-appeal, the applicant has filed this revision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceeds the balance in the Cenvat Credit Account of the DTA Unit. 3.4 That after execution of the B-17 Bond and its acceptance by the jurisdictional Assistant Commissioner of Central Excise, the bonding has to be done by the proper officer of the central excise by taking the following steps : (i) making a complete list of the inputs and the finished goods lying in the DTA Unit on the date of conversion; (ii) determining the duty pertaining to the said inputs and the finished goods, as if they are to be cleared out of the factory as such; (iii) debiting the amount of duty so determined by him in the Cenvat Credit Account; (iv) expunging the balance, if any, still left in the Cenvat Credit Account; (v) if the balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uisite for bonding of the DTA Unit, and that the bonding could not have taken place even before the B-17 Bond was accepted by the Asstt. Commissioner. Thus when the bond itself was not accepted till 5-2-07, and thus when there was no valid bond till 5-2-07, there can be no question of the DTA Unit being bonded before 5-2-07. As such the contention of the lower authorities that applicants DTA unit was converted into an EOU on the mere issuance of a warehouse license on 16-9-06 is not sustainable in law. 3.9 The applicant has prima facie case and the rebate claims filed by them were sustainable in law. The Commissioner (Appeals) had not considered that the applicant had not physically acted upon the unit under EOU status nor availed any fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, by the time when the B-17 bond has been accepted in the year 2007, the total business scenario had changed and the applicant found that running the unit under EOU status will not be profitable and may not be possible to fulfilling EO thereto. Thus the applicant had surrendered the EOU Licence after due process of law and fulfilling procedural formalities. 3.16 While surrendering the EOU Licence, the Excise Authority concerned has also issued NIL due certificate to that of the Revenue Dues. 3.17 That as per the letter of approval by the MEPZ dated 28-4-06, it is clear that the Date of Conversion is the date of bonding with the Customs/Central Excise. The applicant Bond and Bank Guarantee were accepted by the bond officer only on 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported the duty paid goods under claim of rebate as a DTA Unit under Rule 18 of the Central Excise Rules, 2002. As they have not taken any benefit under 100% EOU Scheme and their B-17 Bond was finally accepted on 5-2-07 (after the date of exports) and there is no dispute regarding the export of the duty paid goods. Hence, Government observes that the applicant is entitled to rebate of duty. 9. Government further observes that the Commissioner (Appeals) Coimbatore vide its order No. 69, 70, 71/2009-CX., dated 17-4-09 in the case of this applicant only has also allowed the rebate for the subsequent period. 10. In view of above discussions and findings. Government further observes that the applicant is entitled for rebate. Accordingly Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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