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TMI Blog2016 (3) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions clearances are allowed without payment of duty only for the reason that the buyer undertakes to use the said duty free goods for manufacture of goods which would be exported. The contention of the show cause notice, objections of the Adjudicating authority that the restrictions provided under Section 5A, we are of the view that the appellant have not cleared the goods under any notification which was issued under Section 5A. The Notification No. 43/2001-CE (NT) and the provisions of Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001 prescribed the procedure for clearance of the goods without payment of duty and the said notification was not under Section 5A, therefore co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification No. 43/2001-CE (NT) dated 26/6/2001 following provisions of Central Excise (Removal of goods at concessional rate of duty for manufacture of Excisable goods) Rules, 2001. It was contended in the show cause notice that the said Rules are applicable to a manufacturer who intends to avail benefit of notification issued under sub-section (1) of Section 5A of Central Excise Act, 1944 when used for the purpose specified in that notification. The proviso to section 5A stipulates that unless specifically provided in such notification, no exemption therein shall apply to excisable goods, which are produced or manufactured (i) in a free trade zone or a special economic zone and brought to any other place in India or (ii) by a 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Central Excise (Removal of goods at concessional rate of duty for manufacture of excisable goods) Rules, 2001. It is his submission that there is no bar or restriction for supply of goods under the aforesaid provisions to 100% EOU. He further submits that though the appellant have supplied the goods under bond which was executed by the buyer of the goods under which it was undertaken that the goods so supplied by the appellant shall be used in the manufacture of export goods and for this reason the removal of goods without payment of duty is permitted in law. In support of his submission, he placed reliance on the following judgments: (a) Narasus Exports Vs. Commissioner of Central Excise, Salem [ Final Order No. 41588/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the procedure for clearance of the goods without payment of duty and the said notification was not under Section 5A, therefore contention of the Adjudicating authority is misleading. This issue has been considered by this Tribunal as well as by the Hon'ble High Court and removal of goods under Rule, 19 (2) has been allowed. The relevant operative paras of such judgments are reproduced below: Alsa Marine Harvests Ltd (supra) 2. From the aforesaid, it cannot be denied that the respondent, which is an E.O.U., had fulfilled its legal obligation of exporting the manufactured goods as per Notification (General Exemption No. 127). We have gone through the said notification. It lays down three conditions and on fulfillment thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the CESTAT Winsome Yarns Ltd. (supra) 6. We have carefully considered the submissions from both sides. There is no dispute before us that the clearances made by the appellants is beyond the limit prescribed by the Development Commissioner. In respect of such clearances duty shall be payable, if they are made to general category of buyers. In the present case, the appellant have chosen to supply to special category of buyers covered under Rule 19(2) of the Central Excise Rules, 2002. We agree with the submission of the learned Advocate that Rule 19 does not exclude the clearances from 100% E.O.U. from its purview. The decisions of the Tribunal in the case of Kurt-O-John Shoe Components (I) Ltd. and Paras Fab International (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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