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TMI Blog2018 (5) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... l will no longer have any relevance. Appeal dismissed - decided against Revenue. - E/41193 - 41196/2014 - 41088-41091 - Dated:- 4-4-2018 - Hon ble Ms. Sulekha Beevi, Member (Judicial) And Hon ble Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Govindarajan, AC (AR) for the Appellant Shri M. Karthikeyan, Advocate for the Respondent ORDER Per Bench All these appeals involving similar dispute are taken up together for common disposal. 2.1 The facts of the case are that M/s. Shasun Pharmaceuticals Ltd., the respondent herein are the manufacturers of Organic Chemicals falling under CETH 29 of CETA, 1985. During the period February 2002 to January 2013 the respondent manufactured the final products in their un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 193/2014 No. E/41194/2014 before this forum. 2.2 So also the department took the view that in as much as the finished goods ie. Gabapentin (IPA), if imported are leviable to nil rate of duty of Customs specified under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and nil rate of additional duty leviable u/s 3 of the said Customs Tariff Act, read with exemption Notification No. 96/2009-Cus., dated 11.09.2009, the respondent was not eligible for the exemption in respect of inputs utilized for the purpose of manufacture of such finished goods under the Notification No. 52/2003-Cus. and 22/20003-CE and that the clearance under exemption Notification No. 96/2009-Cus. dated 11.09.2009 are not covered under any of the exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collect the amount equivalent to 5%/6% on the value of said exempted goods is sustainable. Accordingly, the adjudicating authority ought to have confirmed the demand in full along with appropriate interest and penalty as proposed in the SCNs. 3.2 In respect of appeals E/41195 41196/2014, Ld. AR submitted that the finished goods manufactured by the assessee out of the inputs imported/procured indigenously under the Notifications cited supra ie. (Gabapentin (IPA), if imported, are leviable to nil rate of duty of customs specified under First Schedule to the Customs Tariff Act, 1975 (51/1975) and nil additional duty leviable under Section 3 of the said Customs Tariff Act, read with exemption Notification No. 96/2009-Cus. dated 11.09.2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 11.09.2009 are attracting Nil rate of BCD/ACD. Section 3 (i) of Customs Act, and Circular No. 1/2004-Cus. dated 05.01.2004 read together would make it clear that the duty payable by an EOU on its DTA clearances is in the nature of excise duty and is to be equivalent to aggregate of customs duties leviable on like goods when imported. The impugned goods Gabapentine are dutiable and cannot be said to be unconditionally exempted products. They are allowed to be cleared to DTA without payment of duty only as per Notification No. 23/2003. The goods are leviable to nil rate of duty on application of Notification No. 23/2003. The Commissioner has analysed the issue in detail and dropped the proceedings. We find that the Ld. Counsel is correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reversal of the CENVAT credit availed on inputs. This position has been clarified by Board vide circular no. 785/18/2004-CX dated 17.05.2004. 5. Accordingly, it is clarified that the second proviso to para 6 of the notification no. 22/2003-CE dated 31.03.2003 and the proviso to para 3 of notification no. 52/2003-Cus dated 31.03.2003 (refer para 1 of the circular) would not be applicable, in case of supply of manufactured goods by EOU to Advance Licence/Authorisation holder in DTA, without payment of Central Excise duty. 6.2 In view of the clarification, in our view, the contentions put forth by the Revenue in the grounds of appeal will no longer have any relevance. No merit is then found in appeals E/41193-41194/2014 and in conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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