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TMI Blog2014 (1) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... n and yarn woven carpets. They procured raw materials for the manufacture of the aforesaid items both from abroad as well as domestically. These raw materials were procured duty-free by availing the exemption under Notification No. 52/2003-Cus., dated 31-3-2003 in respect of the imported raw materials and Notification No. 22/2003-C.E., dated 31-3-2003 for the indigenous materials. The applicant manufactured the carpets and cleared the same into the DTA during the period September, 2008 to May, 2009 under Served From India Scheme (SFIS) vide Notification No. 34/2006-C.E., dated 14-6-2006. Since the department was of the view that the Notification No. 34/3006-Cus., is an exemption Notification and, therefore, the appellant is liable to pay du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Central Excise duty. In this case, the appellant has not discharged any duty on the clearances made to the DTA and, therefore, duty is demandable on the inputs used in the manufacture of the goods cleared into DTA under SFIS and accordingly, he has confirmed the duty demand and also the penalties imposed by the lower adjudicating authority. Hence the appellant is before us. 3. The learned counsel for the appellant submits that the SFIS scheme under para 3.6.4 of the Foreign Trade Policy is an export promotion scheme and clearance made to DTA under the said scheme are "deemed exports". To operationalise the said scheme, Notification No. 34/2006-C.E., dated 14-6-2006 has been issued exempting the products cleared under the scheme to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed AR appearing for the Revenue reiterates the findings of the lower authorities. 5. We have carefully considered the rival submissions. 5.1 Notification No. 34/2006 grants exemption to goods cleared under SFIS subject to the condition that the duty is debited in the SFIS certificate issued to the recipient by the competent authority. In other words what is exempt is only payment of duty in cash. The duty liability has to be discharged by debiting in the SFIS certificate. Further, this Tribunal in the case of Essar Oil Limited and Universal Power Transformer Pvt. Ltd., cited supra, has considered the issue whether goods cleared under Notification No. 34/2006 are exempted or not and in those cases it was held that clearances unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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