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TMI Blog2012 (9) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... ort Processing Zone. They imported used diesel engines for the purpose of re-construction and to export. They were granted permission by the Development Commissioner for DTA sale of 1000 numbers of re-constructed old engines, vide letter dated 24-4-2001. The Appellant sold 518 numbers of such engines on payment of applicable duties. Show cause notice dated 22-1-2002 was issued alleging that the Appellants operating under para 9.22 of the Exim Policy, were not eligible to DTA sales in terms of para 9.10(b). The Commissioner in pursuance of the show cause notice confiscated 518 numbers of second-hand diesel engines valued at Rs. 37,37,328.12, but allowed the same to be redeemed on payment of fine of Rs. 35.00 lakh. He also imposed a penalty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n been withdrawn, the question of holding the goods cleared on DTA sale as liable for confiscation, does not arise. 5. Relying on the decision of the Tribunal in the case of Ginni International Ltd. v. C.C.E., Jaipur reported in 2002 (139) E.L.T. 172 (Tri.-Del.), which stands affirmed by the Hon'ble Supreme Court, vide Order reported in 2007 (215) E.L.T. A102 (S.C.), he submits that in as much as the permission granted by the Development Commissioner has not been got cancelled, the Customs Authorities cannot disregard and hold that there Is a violation of any licensing restriction. 6. Learned DR strongly supports the Order of the Commissioner. He submits that the permission for DTA sale granted by the Development Commissioner is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, the term, "Manufacture" in the context of Exim Policy includes activities like re-construction and repair. The concept of manufacture in the Central Excise law cannot be brought into for the purpose of 100% EOU Undertaking service activities. The finding of the Commissioner that the payment for DTA sale was not from EEFC Account, is clearly beyond the scope of the show cause notice, as rightly pointed out by the learned Advocate. Further, we are not dealing with the import, per se. Imported goods have been undisputedly subject to re-construction as per L.O.P., and the clearance to DTA was on the basis of specific permission granted by the Development Commissioner. We have not been shown that such clearances to DTA of the re-constructed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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