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TMI Blog2025 (3) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy (FTP); (ii) the unit must have obtained the necessary permissions and approvals from the relevant authorities. In this regard, Notification No. 52/2003-Central Excise (NT) outlines the concessional Excise Duty rates applicable to EOUs. Further, clearance of goods into Domestic Tariff Area under Paragraph 6.8 of the Export and Import Policy shall be allowed only when the unit has achieved positive Net Foreign Exchange Earning. Further, the DTA clearances of finished goods covered under GST, EOUs are required to pay CGST/SGST/UTGST/ IGST, as the case may be, besides payment of whole of the Duty of Customs specified under the First Schedule to the Customs Tariff Act, 1975 (BCD) availed as exemptions on inputs used in manufacture of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (MOC) - the jurisdictional Development Commissioner on payment of appropriate Indirect Taxes in terms of Notification No. 23/2003-CE dated 31.03.2003 as amended, read with Notification No. 01/2011-CE dated 01.03.2011. Accordingly, it appears that the appellant paid the duty in terms of Sl. No. 02 of Notification No.23/2003 (supra); and for payment of Countervailing duty equal to the Central Excise duty payable under Section 3 (1) of the Customs Tariff Act, 1975, the appellant paid the CVD on the effective Rate as per Notification No. 01/ 2011 dated 01.03.2011. 2. It is the case of the Respondent - Revenue that the appellant needs to pay CVD on Tariff Rate and not on Effective Rate as per Notification No.01/2011 dated 01.03.2011; the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant and Shri Sanjay Kakkar, Ld. Deputy Commissioner for the Respondent. 8. The issues that crop up for our consideration are (i) whether the appellant being a 100% EOU, is liable to pay Additional Duty of Customs (CVD) at the tariff rate for the DTA clearance or on the effective rate; (ii) whether there is any liability to pay interest and penalty thereon. 9. To avail of this benefit, the a 100% EOU must meet the following conditions : (i) that the unit must be a 100% EOU as defined under Chapter 6 of the Foreign Trade Policy (FTP); (ii) the unit must have obtained the necessary permissions and approvals from the relevant authorities. In this regard, Notification No. 52/2003-Central Excise (NT) outlines the concessional Excise Dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Duty equal to the aggregate of Duties of Customs in terms of proviso to Section 3(1) of the Central Excise Act, the effective rate of such duties being covered by Notification No. 23/2003 - CE, which has also been amended by Notification No.16/2017 - CE dated 30.06.2017. In other words, the excisable goods are liable to effective excise duty as it existed before GST. 12. In view of the above, it is clear that the EOUs are generally eligible for a concessional rate of excise duty on goods cleared to the DTA, with rates determined based on the effective rate of CVD applicable to similar imports. 13. The CVD is imposed under Section 3 of the Customs Tariff Act, 1975. The concessional rate for EOUs often involves the calculation of CVD th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004, wherein the appellant had not availed Cenvat input Credits for the manufactured of Fly Ash which in question cleared under DTA, as such the appellants have fulfilled the conditions to avail the benefits of the notification. 18. Moreover, it is not disputed by the Revenue insofar as the approvals / permission extended to the appellant by the Jurisdictional Development Commissioners vide permission Letter F.No. A/2004-07/047/EOU-T/5145 dated 22.11.2011 (para-1 of the O-I-O dt. 31.12.2014) for DTA clearance on payment of duty in terms of Notification No. 23/2003-CE dated 31.03.2003 read with Notification No. 01/2011-CE dated 01.03.2011 are concerned. 19. On a plain reading of Notification No.23/2003-CE dated 31.03.2003 & Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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