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TMI Blog2022 (11) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... 00% EOU to normal DTA Unit on 02.03.2010. Thereafter the appellant had informed the central excise department about the stock of input, input contained in work in process and input contained in finished goods lying with the department as on 31.03.2010. The appellant also worked out the duty payable on inputs lying as such, input contained in work in process and input contained in finished goods and paid the duty. The jurisdictional Superintendent vide letter informed to the appellant that the payment of duty on raw material contained in finished goods is not correct and duty is required to be paid on the finished goods lying on the date of debonding. The appellant paid the differential duty of Rs. 22,55,209/- along with interest and informe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk in process / semi-finished goods at the time of debonding. He referred to para 6.18 (a) of Foreign Trade Policy 2009-2014 whereby he submits that the customs and excise duties for the purpose of debonding should be paid on the imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. He submits that as per policy, there is no condition to pay the duty on semi-finished goods/ work in process. He relied upon the following judgements: * Tirumala Seung Han Textiles Ltd. 2008 (9) TMI 252 - CESTAT Bang. * Tirumala Seung Han Textiles Ltd. 2016 (3) TMI 1317 - (AP-HC) * Lupin Ltd. 2019 (2) TMI 937 - CESTAT New Delhi * M/s EID Parry India Limited 2018 (8) TMI 1494- CESTAT-Chennai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not get support from statutory provision or Notification; therefore, the interpretation cannot be made against the assessee. He submits that in case of Brand David Communication Pvt. Ltd. 2020 (37) GSTL 227 (Tri. Kol.) it has been held that the duty cannot be demanded based on trade notice or CBIC Instruction or Circular without any statutory provisions. He submits that the show cause notice is vague and it does not specify relevant notification or any statutory provisions based on which demand can be made on semi-finished goods at the time of debonding. He submits that in any event duty has already been discharged and the said work in process goods were subsequently, manufactured and cleared from the factory. He further submits that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the sides and perused the records. We find that the dispute relates to demand of duty on the semi-finished goods/ work in process goods during the debonding of EOU. We find that as per the details submitted by the appellant which is not in dispute, the semi-finished goods/ work in process was not in fully manufactured form and the same was at different stages of the manufacturing process. The said goods are not marketable as such which were subjected to various other processes to attain the stage of final product, therefore, at the semi-finished stage, where no excisable goods came into existence, the demand of duty at the time of debonding is, in our view, incorrect in law. In any case, these semi-finished goods/ work in process will rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: No duty is payable on WIP/semi-finished goods "40. It is well settled that central excise duty is payable on 'excisable goods' as defined under section 2(e) of the Central Excise Act. No central excise duty is payable at intermediate stage. No goods are manufactured or produced at that stage. Appendix 14-I-L of the FTP Handbook of Procedures Vol. 1 outlines the exit from the EOU Scheme. The said appendix lays down the applicable customs and excise duties payable by the unit on imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods. It does not provide for payment of duties on WIP. Obviously and logically so. Therefore, no duties of customs are payable on WIP at the time of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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