9911796707
TMI Blog2007 (5) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... osit, we take up the appeal for disposal. 2. The appellants are a 100% Export Oriented Unit (EOU) engaged in the manufacture of "Instant Tea" falling under SH 2101.20. During the period of dispute (November, 2000 to May, 2005), they cleared this product to their sister units on payment of duty in terms of Notification No. 8/97-C.E., dated 1-3-1997 (for the period up to 30-3-2003) and Notification No. 23/2003-C.E., dated 31-3-2003 (for the subsequent period). The goods in question were manufactured out of indigenous raw materials, a fact which rendered the appellants eligible for the benefit of the said Notifications. As the clearances were to sister units, and no sale was involved therein, the valuation of the goods was done under Rule 8 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule and the show-cause notice also applied this Rule to the facts of the case. At the same time, the show-cause notice proposed to determine the assessable value on the basis of export price of similar goods. At the outset, we would say that the proposal for valuation of the goods, as raised in the show cause notice, is rather ambiguous. 4. Learned Counsel submits that the appellants paid duty in terms of Notifications No. 8/97-C.E. and 23/2003-C.E., whereunder they were exempted from payment of so such of duty as was in excess of an amount equal to the duty of excise leviable under Section 3 of the Central Excise Act on like goods produced/manufactured in India other than in a 100% EOU or a Free Trade Zone, if sold in India. This exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant provisions of the Customs Act. We have also noticed that the lower authorities also referred to the provisions of Section 3(1) of the Central Excise Act. Unfortunately, they seem to have groped in the dark and have not come out with a concrete finding with reference to the said provisions. It appears to us that, ordinarily, an EOU is liable to determine the duties of Customs leviable on their finished goods cleared to DTA, as if such goods were produced outside India and imported into India, and then pay to the Revenue half of the amount so quantified as duty of excise on the DTA clearances. Notification No. 2/95-C.E., referred to by learned SDR exempted payment of 50% of this duty. Thus, the provisions of Section 3(1) of the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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