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TMI Blog2024 (12) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... ions other than Notification No. 52/2003-Cus. He argued that each Exemption Notification is self contained and hence restriction provided in Export Oriented Unit (EOU) Notification No. 52/2003-Cus, if any, cannot apply to exemptions contained other notifications like 50/2017-Cus., or 46/2011-Cus. He further argued that none of these notifications prescribed any restriction for EOU. Learned counsel argued that while Notification No. 52/2003-Cus., is specially designed for EOU's but It is merely on option. The EOU's are free to avail any other notification. 2.2 Learned Counsel also relied on the clarifications issued by DGEP and TRU. He argued that the said clarification issued Vide F. DGEP/EOU/450/2006 dated 09.02.2007 and clarification issued vide D.O.F.No. 334/7/2017-TRU dated 01.02.2017 clearly allowed the EOU's to avail notifications other than Notification No. 52/2003-Cus. 2.3 Learned Counsel also argued that all the facts were declared in Bill of Entry at the time of import. In these circumstances, no suppression or mis - declaration cannot be alleged to invoked extended period of limitation and no penalty can be imposed. 3. Learned AR relied on the decision of Larger Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lea raised by the Revenue that no interpretation which would have the effect of defeating the very statutory provision shall be given. It has also been observed by Supreme Court in British Airway's case that while interpreting the statute, courts are required to keep in mind, the consequences which are likely to flow up on the intended interpretation that it is the duty of the court to give a harmonious construction of a statute and that such a construction shall suppress the mischief and advance the remedy. Further as observed by the Supreme Court in the case of Ispat Industries it is no where laid down by our constitution or any other law that only Maxwell's Principles of Interpretation can be used by the court. We can use any system of interpretation which helps us solve the difficulties like the mimansa of principle of interpretation which lay down that when there is the conflict between the purpose and the material, purpose is to prevail because in the absence of the prescribed material a substitute can be used, for the material is subordinate to the purpose. If a subordinate idea clashes with the principal idea, the former must be adjusted to the latter or must be dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mestic Tariff Area then the same need to be done in terms of the various conditions is specified under Notification No. 52/2003-Cus. In other words Notification No 52/2003-Cus., is a notification which requires the importer to use the goods for the specified purposes and also account for all the goods manufactured out of the goods imported under Notification No. 52/2003-Cus. The said notification also requires the appellant to fulfill export obligation the terms of the Exim Policy. The said notification also permits to Export Oriented Units, the import capital goods duty free. The goods cleared from the Export Oriented Units into Domestic Tariff Area are treated as imports and are liable to duty in terms of proviso to Section 3A of the Central Excise Act, 1944. This is done specially to provide Level Playing Field to domestic manufacturers as the export Oriented Units are allowed to import their inputs and capital goods without payment of duty. 4.2 Notification No. 50/2017-Cus. and 46/2011-Cus., provide nil rate of duty to importers. None of this notifications prescribes in bar in respect of Export Oriented Units. Learned Counsel for the appellant has relied on the CBIC letter dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case they are not used in connection with production within a period of three years along with interest. Further, EOU follows procedure of procurement certificate/ CT-3 certificate for import/ indigenous procurement, gives information of receipt of the goods which are physically verified and warehoused by the officer in-charge and rewarehousing certificates are issued. These are mandatory features of the EOU scheme for the unit operating under EOU notification 52/2003-Cus and 22/2003-CE. Thus an EOU following such a procedure substantially satisfies the requirements of the Rules to be followed as stipulated under the notifications 21/2005-Cus dated 01.03.2005, 39/2005-Cus dated 02.05.2005 and 6/2006-C.E. dated 01.03.2006. 4. Despite observance of the provisions of the above rules in spirit, if EOUs are denied exemption on parts, components and accessories on the ground that these notifications are not applicable to EOUs, it would put EOU manufacturers at a disadvantageous position vis-a vis DTA manufacturers. This is not the intention behind the relevant provision of EOU notification 52/2003-Cus and 22/2003-CE. Accordingly, it is hereby clarified that exemption of customs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons which prescribe concessional [including Nil] duty rates on specified goods [inputs/raw materials etc.] for use in manufacture of specified goods, subject to conditions prescribed. In this context, it has been stated that EOUs are not able to avail benefit of such exemptions on inputs imported or procured domestically by them. 5. The matter has been examined. As mentioned in para 2 above, nonapplicability of exemptions under notifications issued under section SA of the Central Excise Act, 1944 is only in respect of excisable goods produced or manufactured by an EOU and cleared to DTA and not in respect of inputs/raw materials procured by them domestically and utilised for production/manufacture of goods which are cleared by them to DTA. 6. In view of the above, it is hereby clarified that EOUs will also be eligible to import or procure raw materials/inputs at other concessional/Nil rate of BCD, excise duty/CVD or SAD, as the case may be, provided they fulfill all conditions for being clable to such concessional or Nil duty. For these purposes, if an EOU is already registered with the jurisdictioral Central Excise Authority, it will not be required to take arry fresh regist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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