9911796707
TMI Blog2020 (6) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... tapua, Andhra Pradesh. Officers of Central Excise, Bangalore have visited the premises of the appellants and have found that the appellants had committed various offences in relation to procurement of raw materials, clearance in DTA, etc., and evaded duty as follows: (i) Rs. 83,67,399/- on the imported inputs removed or diverted in contravention of Notifications 53/97 dated 3.6.1997 and 52/2003 dated 31.3.2003; (ii) An amount of Rs. 47,54,781/- on indigenous inputs procured on the basis of CT-3 certificates and diverted in contravention of Notification No.136/94 dated 10.11.1994 as amended and No.22/2003-CE dated 31.3.2003 as amended; (iii) An amount of Rs. 85,25,274/- being the duty chargeable on inputs used exclusively for manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om one EOU to the other. It is not the case of the department that the goods were diverted into the local market and have not been utilized for the designated purpose of their sister unit at Venkatapur in terms of the permission granted by the Development Commissioner. He submits that CESTAT has decided an identical case in Sunil Kumar Jain and Ors. vs. CCE reported in 2008 (85) RLT 105 (CESTAT-Mum.) holding that there can be no demand on raw materials for non-obtaining of permission when the raw materials have been received, accounted and used for production. Learned counsel further submits that agricultural units are permitted to remove inputs under the Foreign Trade Policy (FTP). He submits that, therefore, no demand can be sustained in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to manufacture. This was held so by the Supreme Court in the case of M/s. BOC (I) Ltd.: 2008(226) ELT 323 (SC). Further, Circular No.314/30/97-CE dated 6.5.1997 has explained the position regarding the liberal interpretation of the word 'manufacture'. The Circular was held in the following cases: * CC Vs. Weston Electronics reported in 2000 (116) ELT 181. * Hewlett Packard India Sales (P) Ltd. Vs. CC - 2009 (241) E.L.T. 545 (Tri. - Bang.) * DS Exports vs. CCE, Jaipur - 2017 (357) E.L.T. 719 (Tri. - Del.) 5. He further submits that all the DTA clearances were undertaken after the permission granted by the Development Commissioner, who has examined their application before granting permission and therefore, a contrary view cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocure goods by import or on CE-3 certificates as per the provisions of FTP. We find that the provisions of the FTP and the Customs Notification are required to be read in harmony. It is not the case of the department that the imported or domestically procured goods are diverted into open market. The department agrees to the fact that the appellants have transferred the impugned goods to their sister EOU unit in Venkatapur. There is no allegation or proof that the same has been diverted by either of the EOUs. The appellants have submitted a Chartered Accountant certificate correlating transfer and receipt of the goods. They have also made good the duty for deficient items along with interest. Moreover, such transfers have been made after du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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