9911796707
TMI Blog2019 (2) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be exported from units. The description of goods in the Green card does not differentiate or specify goods on the basis of Customs Tariff. It merely treats them belonging to a class. Bearing machines are considered by department as part of Turbo Charger which are parts of automobile, then Precision Automotive Components also being part of Automobiles should fall in the same class, since they are engaged in manufacture and export of various parts of automobiles as stated in the Green Card. The appellant has cleared in DTA Bearing Housing only. Precision Automotive Component was not cleared in DTA. In para 6.8 what is stated is that when more than one product is exported, such unit can clear in DTA upto 90% of value of such specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal duties. Within this entitlement of DTA sale, a unit may sell in DTA, its products similar to the goods which are exported or expected to be exported. However, units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90% of the FOB value of export of specific products subject to the condition that the total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit. 2. From the ER-2 returns filed by appellant for the period from April 2009 to March 2010, the following facts emerged:- Bearing Housing Machined (parts of Turbo Charger) Precision automotive components FOB Value of exports ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as under:- 3.1 There is no distinction between turbo charger components or precision automotive components in the green card. Hence, scope of the expression is to be seen in this context. 3.2 Similar goods definition cannot be taken from another enactment / rule. In this regard, he relied on the following decisions:- a. Meghmani Industries Ltd. Vs. Commissioner of Central Excise, Ahmedabad 2010 (261) ELT 411 (Tri. Ahmd.) b. Commissioner of Central Excise, Pune Vs. TELCO 2000 (126) ELT 1102 (Tribunal). 3.3 For units making more than product, within the overall value of 90% of FOB value of export products, any product can be cleared within DTA without restriction. Hence respondent‟s interpretation is wrong. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e components‟. In the Green car, the permission is for manufacture / export of Precision Automotive Components and Ancillaries, Turbo Chargers and parts thereof. The department has relied upon Board Circular to hold the goods are not similar. The said Circular refers to definition of similar goods from Customs Valuation Rules. In Meghmani Industries 2010(261) ELT 41 (Tri. Ahmd.),it is held that the definition of similar goods in Customs Valuation Rules cannot be imported for interpretation of Foreign Trade Policy. Both these would surely fall under the broad-banded category of automobile components. For appreciation para 6.8(a) of Foreign Trade Policy is reproduced as under:- Page 25 26 DTA Sale of Finished P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the Table given in para 2 above, the appellant has cleared in DTA Bearing Housing only. Precision Automotive Component was not cleared in DTA. In para 6.8 what is stated is that when more than one product is exported, such unit can clear in DTA upto 90% of value of such specified goods provided the total DTA sale does not exceed 50% FOB value of exports of the unit. The appellant have sold 90% FOD of value of export of Bearing Housing in DTA and has not exceeded 50% of FOB value of the unit since there is no DTA sale of Precision Automotive Component. The condition is therefore fully satisfied. The denial of concessional rate of duty as per the notification is unjustified. The demand raised cannot sustain and requires to be set aside, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
