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TMI Blog2012 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating authority confirmed the demand and imposed the penalties. The respondent filed appeals before the Commissioner (Appeals) and by common impugned order after relied upon the decision of the Tribunal in the case of Cosco Blossoms Pvt. Ltd. Vs. Commissioner of Customs reported in 2004 (164) E.L.T.423 (Tribunal) held that demand of duty is not sustainable in respect of cut flowers grown by 100% EOU and cleared for DTA as cut flowers are non-excisable. 4. Revenue filed these appeals challenging the impugned order passed by Commissioner (Appeals) Revenue relied upon the decision of the Tribunal in the case of L.R. Brothers, Indo Flora Ltd. Vs. Commissioner of Customs, Meerut reported in 2009 (235) E.L.T. 324 (Tri. Del.) to submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attract, in terms of the provisions of para 3(a) of the exemption Notification No. 123/94-CUS., only the Custom Duty involved on the inputs used in the production of the cut-flowers. The point of dispute is as to whether the Custom Duty payable on the inputs used in the production of the cut-flowers which had been cleared to DTA, is to be taken as an amount equal to Custom Duty chargeable on the import of cut-flowers, as such, or it should be the actual Custom Duty on the inputs used in the production of cut-flowers cleared to DTA. 5.1 Para 3(a) of the Notification No. 126/94-CUS. during the period of dispute read as under:- Notwithstanding anything contained in this notification the exemption contained herein shall also apply to the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture or packaging of such articles), even if not exported out of India, are allowed to be sold in India under and in accordance with the Export-Import Policy and in such quantity and subject to such other limitation and conditions, as may be specified in this behalf by the Development Commissioner, on payment of duty of excise leviable thereon under Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) or where such articles (including rejects, waste and scrap material) are not excisable, Customs duty equal in amount to that leviable on the inputs obtained under this notification and used for the purpose of production, manufacture or packaging of such articles, which would have been paid, but for the exemption under this notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts used in the production of those cut-flowers, which as per the provisions of Notification, as it existed at that time, was equal to the Customs Duty chargeable on the import of cut-flowers, as such. In the Tribunal s judgment in case of Zygo Flowers Ltd. (supra) [2006 (196) E.L.T. 431 (Tri.-Bang.)] and Cosco Blossoms Pvt. Ltd. (Supra), the implications of the wording of para 3(a) of the exemption notification during the period of dispute - or where such articles [including rejects, waste and scrap material] are not excisable, on payment of Custom Duty on the said goods used for the purpose of production, manufacture or packaging of such articles in an amount equal to the Custom Duty leviable on such articles, as if imported, as such, had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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