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TMI Blog2024 (2) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.03.2003 (Sr. No. 1) - HELD THAT:- The Tribunal in various decisions has taken a consistent view that the stock transfer from EOU to their other unit is not falling under category of sale. The said supplier will not be treated as exempted from payment of VAT/ Service Tax. Therefore, there is no violation of condition of Notification 23/2003-CE - reliance can be placed in Micro Inks [ 2014 (2) TMI 207 - CESTAT AHMEDABAD ], VVF Ltd. [ 2014 (2) TMI 922 - CESTAT MUMBAI ] and Sti Industries [ 2014 (12) TMI 1130 - CESTAT AHMEDABAD ]. The demand of SAD confirmed by the adjudicating authority is not sustainable - Hence, the impugned order is set aside - Appeals are allowed. - HON'BLE MEMBER ( JUDICIAL ) , MR. RAMESH NAIR And HON'BL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant to their own unit is not exempted from VAT/ Sales Tax. It is very much liable to sales tax. However since the goods are cleared to their own unit, the nature of the transaction is a stock transfer and in case of stock transfer, no VAT/Sales Tax is payable not by virtue of any exemption but on the ground that such transaction does not involve sales of the goods and VAT/Sales Tax is payable only in a case where the sale of goods takes place, therefore, the Revenue is incorrect in their contention that merely because the clearance was made as a stock transfer to their own unit, the said transaction is exempted from VAT/Sales Tax. Accordingly, the appellant is rightly entitled for exemption under Notification 23/2003-CE as the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58-CESTAT-AHM 7. At the outset, it is to be recorded that the facts are not much in dispute inasmuch as the entire duty liability as has been confirmed is only in respect of clearances made by the appellant (100% EOU) to their sister concern in DTA. It is also undisputed that the goods which are cleared from EOU, independent buyers in DTA sales tax/VAT is levied as per the provisions of the State laws and are being discharged by the appellant. It is also undisputed that the same products are cleared by the appellant to independent buyers and their sister concern. 8. The entire dispute is correctly put forth by both sides regarding the interpretation of benefits of Notification No. 23/2003-Cus. as amended from time to time filter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on granted by the State Government. In the absence of any notification granting exemption for specified products by the State Government from levy of sales tax on the finished goods cleared from 100% EOU, it would be incorrect to hold that the goods were exempted from sales tax, more so when the appellant has discharged the sales tax on the same products which were cleared to independent buyers. Secondly, we find that the lower authority seems to have been guided by the argument that inter unit clearance are not taxed by the State Government and is to be construed as an exemption granted. This is totally a wrong perception of the law inasmuch as that exemption, if any, under statute needs to be granted in accordance with law i.e., by issuan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales tax/CST/VAT. We also find that large emphasis placed upon, by the lower authorities as well as departmental representative on the decision of the Larger Bench in the case of Moser Baer (I) Ltd. (supra). In our view, the reliance on the ratio seems to be erroneous since the question which was raised before the Larger Bench was not the question that is before the Bench in the proceedings in these appeals. The Larger Bench was specifically referring to the issue which was in respect of a 100% EOU availing sales tax exemption, for determining the Excise duty payable on aggregate value of customs duty by inclusion of SAD, whether should be taken into account or not while answering such a reference, Larger Bench has held that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable. 13. Since we have disposed of all the appeals in favour of the assessee on merits as well as in limitations, we are not recording any finding on various other submissions made by both sides. 14. The impugned orders are set aside and all the appeals allowed with consequential relief, if any. VVF Ltd. 2014-TIOL-04-CESTAT-MUM 5. Having considered the rival contentions, it is held that the ruling relied upon by the Revenue is of no help being clearly distinguishable in view of the additional exemption of Sales Tax in respect of the concerned goods in the case of Moser Baer. Whereas in the present case, it is admitted position that the goods are not exempted from the Sales Tax in the DTA to which they have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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