9911796707
TMI Blog2025 (1) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... TD., SHRI PRAVEEN GARG, AUTHORISED SIGNATORY VERSUS CCE ST, ROHTAK [ 2015 (4) TMI 733 - CESTAT NEW DELHI] has held that 'Since on the goods sold into DTA, VAT levied by the State Government has been paid, and in this regard, there is no dispute, the conditions of exemption Notification No. 102/2007-CUS dated 14/09/07, as applicable to the DTA clearances of a 100% EOU, have been substantially satisfied and hence the goods would be fully exempt from SAD as, in our view, the benefit of this notification, which has been issued for the goods imported by person for subsequent sale and whose condition have been prescribed accordingly, cannot be denied in respect of DTA clearances of a 100% EOU if the condition as applicable mutatis mutandis to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; during the process of manufacture scrap of iron/ steel is generated in the factory and was cleared by the appellants in the Domestic Tariff Area in terms of Para 6.8 of Foreign Trade Policy 2004-2009; the appellants were required to pay Excise Duty, on such clearances, in terms of Section 3 of the Customs Act, 1962; the appellants claimed exemption from payment of basic Customs duty in terms of Notification No.21/2002 as amended from time to time up to 07.05.2013; the appellants were paying basic Customs duty at the rate of 2.5% during the period 08.05.2013 to 30.09.2013; the appellants were further claiming exemption of the Special Additional Duty leviable under Customs Tariff Act, 1975; in effect the appellants were paying the Counterva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015. She submits that as such the issue has attained finality. She submits that Department cannot take contrary stand for the same appellant in different proceedings. 3. She also submits that the appellants have availed the exemption from payment of BCD and SAD correctly. She submits that the appellant being a 100% EOU is entitled for clearance in DTA. She also submits that Cess is not payable three times and is payable twice for the period 01.02.2012 to 16.03.2012 and only once for the period 17.03.2012 to 30.09.2013. She further submits that as no duty is payable, penalty is not imposable on the company and their officers. She relies on the following: Commissioner of Central Excise Pune-II vs. SS Engineers, Order dated 7.7.2023 (SC) Rosm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in detail and found that: 7. As regards the exemption from Basic Customs Duty under Notification No. 21/2002-Cus. (Sl. No. 200) in respect of Steel scrap cleared into DTA, this exemption notification exempts fully and unconditionally, the melting scrap imported into India. In respect of the DTA clearances of scrap made by the appellant, the duty is payable in terms of proviso to Section 3(1) of Central Excise Act, 1944 and the quantum of this duty payable would be the Basic Customs Duty plus Additional Customs Duty plus Special Additional Customs Duty (SAD) plus education cess S H cess. Notification No. 23/2003-C.E. prescribes the concessional rate of duty in respect of DTA clearances subject to the conditions specified in para 6.8 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he actual users or the dealers, as only use to which Iron and Steel Scrap can be put, is by melting the same to make some other Iron and Steel products. Same view has been taken by the Tribunal in its judgments in the case of Indo Deutsche Trade Links v. CC (Imports), Chennai reported in 2014 (303) E.L.T. 442 (Tri.-Chennai) (para 33) of the judgment. 7.2 In view of this, the part of the impugned order confirming the duty demand on the basis of denial of exemption under Notification No. 21/2002-Cus. in respect of Basic Customs Duty is not sustainable and the same has to be set aside. 8. As regards the exemption from the portion of the Central Excise Duty equivalent to the Special Additional Customs Duty (SAD) payable under Section 3(5) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is limited to the benefits that would be available for deemed exports. It is not possible to say that it is export is for all intents and purposes. None of the benefits referred to is provided for in the Customs Act, 1962 or in the Central Excise Act, 1944. Such supply will not be for the purpose of this Act be deemed to be exports. Thus the drawback under Section 74 or 75 ibid will not be available. We do not find the decision relevant in the present context. In the case of 100% EOUs, when goods are cleared to 100% EOU it is deemed export; when a 100% EOU imports goods, no customs duty is charged because a 100% EOU is treated as a customs bonded warehouse; when a 100% EOU clears the raw materials imported, it is required to pay the customs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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