9911796707
TMI Blog2017 (5) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed by the Revenue against the order in appeal dated 19.04.2016 in which duty demand of Rs. 32,33,960/- was dropped for the disputed period 2013-15. 2. M/s. Flex Foods Ltd. is a 100% EOU who was granted the Letter of Permission(LOP) for manufacture of freeze dried vegetable and tropical fruits, individual quick frozen mushroom, culinary herbs, vegetables and fruits and also dehydrated mushroom, culinary herbs, etc. They obtained permission from the Development Commissioner Noida SEZ for DTA sale of certain products. Subsequently, at the time of DTA sale they charged payment of central excise duties. The Revenue authorities took the view that the goods cleared in DTA by the assessee were not conforming to the permission granted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the specific products, subject to the condition that total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit, as stipulated above." 4. In terms of the above provision the assessee has been granted LOP for three categories of products - Air dried(AD), freeze dried (FD) and individual quick frozen (IQF). Even though the DTA sale permission was granted under the three broad categories of goods as above, the Revenue authorities went about working out the permissible DTA sales individually for each item such as carrot, bhindi etc taking into account the exports made of that item, under the three categories. The lower authorities have held that the sale of specific products namely air dried, freeze dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me on the basis of the export obligation fulfilled by the assessee in various Financial years. The various permissions granted by the Development Commissioner are copied below for ready reference: Permission Item Value permitted Rs. (lacs) Date of permission First Freeze Dried mushroom, Herbs, Vegetables and fruits frozen / individually quick frozen fruits, vegetables, mushroom and herbs, dehydrated vegetables, tropical fruits, culinary herbs and spices 1236.90 29.06.2007 Second Freeze dried vegetables / culinary herbs / culinary spices Vegetables Culinary herbs Culinary spices 826.06 692.17 109.15 30.11.2009 Third Freeze dried vegetables, tropical fruits, culinary herbs and spices, Dehydrated vegetables, tropical fruits, culi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits have been prescribed for vegetables, culinary herbs and culinary spies. In the permission letter dated 13.04.2012, the goods produced by the EOU have been grouped into three categories and separate value limits specified for each group. 9. As explained supra, the entitlement for concessional duty is required to be evaluated strictly in terms of the various permissions granted by the Development Commissioner. We note that in the impugned order dated 20.02.2015 the method adopted for determining the concessional duty benefit is not in accordance with the specific permissions granted by the Development Commissioner. We also note that the stand adopted by the Ld. Commissioner (A) in the impugned order dated 19.04.2016 is also strictly not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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