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TMI Blog2018 (5) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... U to Advance Licence/Authorisation holder in DTA, without payment of Central Excise duty. This CBEC Circular will apply mutatis mutandis to supply of deemed exports covered by the category (f) of para-8.2 of FTP which covers supply of goods to a project of purpose for which the MoF, by a notification, permits import of such goods at zero customs duty - It is also clarified in para-8.2 that benefit of deemed export shall be available under para 8.2 (f) only if the supply is made under the procedure of International Competitive Bidding. The benefit of deemed export will be available to the supply of one Diesel Generator set made by the appellant to ONGC under Project Authority Certificate issued by the competent authority - appeal allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise law. The adjudicating authority confirmed the proposals in the SCN in his adjudication order dated 05.08.2014. In appeal, the Commissioner (Appeals) vide order No. 89/2016 dated 29.02.2016 (impugned order) upheld the order of the original authority and rejected the appeal. Hence, the appellant filed appeal before this forum. 2. Today when the matter came up for hearing, the appellants were represented by Shri K.S. Jain, M.D of the appellant, who made following oral submissions which can be broadly summarized as under:- i) As per para 6.11 (c) (ii) of Project Authority Certificate (PAC), EOU units are entitled to exemption from payment of Central Excise duty on goods procured from DTA, on goods manufactured in India. ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, which availed the facility of duty free inputs, it has been provided that when such goods are cleared into by DTA by later where the basic duty and CVD both are nil, duty foregone on inputs utilized for production of such goods will have to be paid, as in the case of non-excisable goods vide para-6 of the Notification No. 22/2003-CE dated 31.03.2003 and para-3 of the Notification No.. 52/2003-Cus. dated 31.03.2003. 4. Heard both sides and have gone through the facts. 5.1 Notification 22/2003-CE very clearly denies exemption to inputs imported/procured indigenously if the finished goods manufacture, if imported is leviable to nil rate of duty. In the instant case, finished goods manufactured by the appellant out of the inputs proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempts Central Excise duty when such manufactured goods are supplied to an Advance Licence/Authorisation Holder. In fact, clearance from EOU or DTA unit to Advance Licence/Authorisation holder has been allowed without payment of Central Excise duty, as both the cases are of Import substitution. In case of supply of goods to Advance Licence/Authorisation holder, the export obligation is cast upon person holding Advance Licence/Authorisation and in case of default in export obligation recovery from the person holding Advance Licence/Authorisation is provided for in law. 4. Further, if the EOUs are made liable to pay back the amount availed as exemption on the inputs in case of supplies to Advance Licence/ Authorisation Holder, with re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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