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TMI Blog2024 (8) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... twisted/PFY yarn in DTA on payment of duty in terms of either Notification No. 2/95 -CE dated 04.01.95 or No. 8/97-CE dated 01.03.97 or No. 13/98-CE dated 02.06.98. The contention of the department is that the Appellant had made clearances of their finished goods including rejects and wastes for DTA sales on the basis of 50% of the deemed export including rejects and waste for DTA sale on the basis of 50% of the deemed export value instead of 50% of the FOB value of actual physical exports. As per the department the deemed exports made under para 9.10 of the EXIM Policy are not at par with physical exports and, therefore, for calculating the entitlement for DTA sale under Para 9.9(b) and 9.20, the deemed export value should not be counted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Exchange earnings as a Percentage of Export. He allowed the benefit of Notification No. 2/95-CE and 13/98-CE by considering deemed exports as DTA sales. However he found that the Appellant has not paid the applicable duty in accordance with the Notification No. 13/98-CE. Therefore confirmed the differential duty amounting to Rs. 6,52,469/- and 10,11,593/- along with interest and penalty. He dropped the demand of customs duty demanded on raw materials used in the manufacture of subject finished goods cleared into DTA. Hence, the present appeals are before us. 3. Shri Willingdon Christian, Ld. Advocate appearing for the Appellant through video conferencing submits that in the denovo proceeding in pursuance of Tribunal's order dated 15.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to confiscation under Rule 209. Therefore none of the ingredients of the Rule 209 stands satisfied and hence, there is no justification for imposition of penalty under Rule 209. 5. Shri Sanjay Kumar, Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterated the finding of the impugned order. 6. We have carefully considered the submissions made by both sides. We find that the short issue to be decided in this matter is whether the appellant is eligible for benefit of exemption Notification No. 20/98 -CE as claimed by them or they were required to pay higher rate of duty under Notification No. 13/98-CE as held by Ld. Commissioner. For appreciating the respective contentions of both the sides, it would be beneficial to refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in the First Schedule to the said Central Excise Tariff Act. 2. Fabrics of - (i) cotton (containing any other textile material), (ii) man-made fibres, not subjected to any process 52, 54 or 55 50% of duty specified in the First Schedule to the said Central Excise Tariff Act. Explanation. - For the purposes of this notification, the value of the goods shall be as determined in terms of section 4 of the Central Excise Act, 1944 (1 of 1944). [Notification No. 20/98-C.E., dated 18-7-1998 as amended by Notification No. 11/2000-CE dated 01.03.2000] Notification No. 13/98-CE dated 02.06.1998 as amended by Notification No. 38/99-CE dated 16.09.1999 and No. 11/2000-CE dated 01.03.2000 Effective rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy, 1 April, 1997 - 31 March, 2002. [Notification No. 13/98-C.E., dated 2-6-1998] 7. We find that the Notification No. 20/98-CE covered DTA clearances effected by the EOU in terms of para 9, 9(a), (b), (c), (d) or (f) of para 9.9. or para 9.20 of the Import Export Policy. Further this Notification fixes the effective rate of duty at 50% of Central Excise Tariff Rate, subject to the condition that the finished goods are manufactured by 100% EOU wholly out of indigenous raw materials and the finished goods are chargeable to Nil rate of duty if manufactured and cleared by DTA unit. We find that the Appellant during the period Octo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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