9911796707
TMI Blog2008 (7) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 6-6-2002, clarified that entitlement of reject upto 5% of production will be determined in totality and not with reference to the specific items – further, there is no finding that the rejects are artificially and falsely inflated – therefore, Commissioner (Appeals) is justified in allowing respondent’s appeal holding that the 5% limit shall be applicable on the total production and not for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of the above yarns, generated some wastes and rejects. (b) They have cleared such rejects and waste of different categories of yarn in the domestic market. In respect of 100% polyester and polyester cotton yarn, the rejects and wastes was more than 5% of the value of production of the respective items. However, in respect of other categories of yarn, the rejects were lower than 5%. As a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of allowing 5% limit at concession rate was not permissible. 5. Learned Advocate for the respondents submits that in terms of para 9.9 of EXIM policy, the rejects up to 5% of the value of production is permitted to be sold in the domestic area. The policy does not specify that the said 5% should be determined separately in respect of each of the product manufactured by the 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the policy provision shows that there is no conscious effort to fix 5% limit for each of the product cleared by the 100% EOU. The Development Commissioner, initially, vide letter dated 28-1-1999 clarified that bunching provision of para 9.24 of the Handbook of Procedure is not applicable to rejects. However, vide his subsequent clarification dated 6-6-2002, it has been clarified that entitlem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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