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TMI Blog2018 (6) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... duty under the First Schedule of CTA, 1975 and additional duty leviable under section 3 of the CTA, 1975. A Show Cause Notice dt. 05.11.2004 was issued to them on the ground that in the month of November, CBEC issued a circular No. 67/2004 and clarified that EOU are liable to pay duty @ Rs. 1/- to 1.5/- per litre as additional duty on the clearance of High Speed Diesel in terms of Section 116 of the Finance Act, 1999 as amended vide Section 168 of the Finance Act, 1962 or any other law for the time being in force. The show cause notice proposed demand of additional duty of customs of Rs. 5,40,000/- along with interest under section 28 of CA, 1962. The Adjudicating Authority vide Order-inoriginal dt. 11.02.2009 confirmed the demand, however ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of Entry. The department has no case that the impugned goods were removed from the warehouse or were not used in the production of articles exported. As the impugned goods were not cleared from the warehouse, there was no collection of duty on the goods entailing short levy. Therefore, there cannot be any demand under Section 28 of the Customs Act. The demand is therefore not sustainable. As there is no finding that the appellant committed any act of omission or commission rendering the goods liable for confiscation under Section 111 of the Customs Act, we find that no penalty is imposable on the appellants under Section 112 of the Act. 5. In Priya Blue Industries Ltd. v. CC (Preventive) [2004 (172) E.L.T. 145 (S.C.)], the Apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods are required to be imported directly to such premises. The manufacturing is also required to be done within the bonded premises. Hence, we find support for the contention of the appellants that the entire premises of 100% EOU is a bonded warehouse. Neither the Manual nor the Customs Act speaks of any requirement to pay any duty on the warehoused goods which are used for manufacture in bond nor it requires filing of any ex-bond bills of entry at that stage. Section 68 of the Act deals with clearance of warehoused goods for home consumption and it requires filing of an ex-bond of Bill of entry payment of import duty and other charges and an order for clearance for home consumption. Section 65 of the Act which deals with manufacturing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has observed as under :- "10. On a perusal of the provisions relating to warehousing in the Customs Act, 1962 and the provisions relating to EOU Scheme under the Customs Manual, we find that the entire premises of a 100% EOU is required to be licensed as a customs bonded warehouse and the imported goods are required to be imported directly to such premises. The manufacturing is also required to be done within the bonded premises. Hence, we find support for the contention of the appellants that the entire premises of 100% EOU is a bonded warehouse. Neither the Manual nor the Customs Act speaks of any requirement to pay any duty on the warehoused goods which are used for manufacture in bond nor it requires filing of any ex-bond bills of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces has observed as under :- "4. The facts are not in dispute inasmuch as, the appellant had transferred the High Speed Diesel (HSD) and had cleared the same to be used in the factory premise who is 100% EOU. Any goods which are moved into 100% EOU are exempted from payment of customs duty. In the same way, the additional duty of customs also cannot be levied. We find that this view has been expressed by the decision of the Tribunal in case of Commissioner of Customs, Jamnagar v. Reliance Industries Limited and also by the Larger Bench of the Tribunal in the case of Paras Fab International v. CCE, Kandla - 2010 (256) E.L.T. 556 = (2010-TIOL-963-CESTATDEL- LB)." Moreover the Notification No. 59/99, dated 11-5-1999 exempts high speed d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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