9911796707
TMI Blog2014 (9) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... ief that arises for consideration are that M/s STI Industries is a 100% Export oriented unit engaged in the manufacture of Electrical Machinery & parts thereof falling under chapter heading No. 85, 72, 74 & 76 of Central Excise Tariff Act, 1985. M/s STI were issued show cause notice dt.02.12.2011 alleging that during audit of the unit it was found that while clearing the goods in DTA to its own unit under stock transfer during the period Sept. 2009 to May 2011, M/s STI Industries has not paid any sales tax nor special additional duty. The Audit party took an objection to non-payment of SAD on the ground that clearance made to their sister concern would fall under the category of exempted from payment of sales tax h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in following judgments and hence demand of SAD is not sustainable: (i) Micro Inks Vs CCE Daman 2014 (303) ELT 99 (Tri-Ahmd) (ii) In RE: G.E. India Industrial Pvt.Ltd. 2014 (304) ELT 452 (A.A.R.) (iii) VVF Ltd Vs CCE Belapur 2012 (281) ELT 585 (Tri-Mum) (iv) Kumar Arch Tech Pvt.Ltd. Vs CCE Jaipur-II 2013 (290) ELT 372 (Tri - LB) 7. As regard demand differential demand of CVD, he submits that the demands were confirmed only on the basis of annexure of computation of demand to SCN and no reason for raising such demand was appearing either in the SCN or the Order passed by the adjudicating authority. He submits that the Appellate Authority has upheld demand only on the basis of such computation of demand appearing as annexure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpour Industries Ltd 2007 (215) ELT 489 (S.C.) (ix) CC Mumbai Vs Toyo Engineering India Ltd 2006 (201) ELT 513 (S.C.) 9. Heard both sides and perused the records. 10. We find that the issue of demand of SAD on the goods cleared by 100% EOU to their own DTA Unit, is decided in favour of the assessee by this Bench in the case of M/s MICRO LINKS Vs. CCE, DAMAN 2013 (303) ELT 99 (TRI -AMD) wherein the demands were set aside. In our considered view, the ratio of the decision of this Bench in the case of Micro Inks (supra) squarely settles the law in so far as this point. We are of the view that the demand of SAD on goods cleared to its own DTA Unit does not survive, accordingly, we do not find any merit in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation is sustainable, we hold it so. Since the most of the demand is set aside, having held that there was no intention to evade duty, we find that penalties imposed are unwarranted and they are set aside. In view of our above observation and findings we dismiss the appeal filed by the revenue and allow the appeal filed by M/s STI to the extent that the demands of CVD raised by invoking extended period of limitation are not sustainable and only the demand of CVD under normal period would survive. We also set aside the penalty imposed under Section 11AC. 12. Both the Appeals are disposed off in above terms and cross objections filed by assessee also stand disposed of. (Operative portion of the order pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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