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TMI Blog2005 (2) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... , namely, A.C. Sheets, Air-Conditioners, Flush doors, Typewriters, Storewells, Tables, Chairs which was granted. 4.On 2-1-1991, the department issued a show-cause notice calling upon the assessee as to why duty of Rs. 4,55,872.72 should not be recovered from the assessee for not using the goods, cleared under form CT-3 in the manufacture of cotton/filament yarn in their Undertaking. 5.By reply dated 31-1-1991, the assessee submitted that since the competent authority had allowed the above goods to be brought into their Undertaking from 100% export oriented unit under form CT-3 and since the said goods were brought into their undertaking in connection with the manufacture of combed cotton yarn, the requisite conditions mentioned in the Notification No. 123/81 stood satisfied and the department was not entitled to demand duty from the assessee. The assessee further submitted that direct utilization of the said goods in the manufacture of combed cotton yarn (which was an export product) was not necessary in view of the words "in connection with the manufacture" in the said notification. 6.The Adjudicating Authority confirmed the show-cause notice holding that the assessee had faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in another Free Trade Zone, Export Processing Zone or hundred per cent export oriented undertaking for the manufacture of goods solely meant for export; (c) such undertaking exports out of India hundred per cent or such other percentage as may be fixed by the said Board of articles manufactured wholly or partly from the goods for the period stipulated by the said Board or such extended period as may be specified by the said Board; (d) on clearances up to twenty-five per cent of articles so produced or manufactured and allowed to be sold in India, such undertaking shall pay duty of excise leviable on such articles under section 3 of the said Central Excises and Salt Act; (dd) on clearances of five per cent of articles so produced or manufactured or such other percentage, as may be fixed by the said Board and allowed to be sold in India, such undertaking shall pay duty of excise leviable under section 3 of the said Central Excises and Salt Act, provided such articles are in the nature of rejects; (e) the procedure set out in A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or such extended period as may be allowed by the Assistant Collector of Central Excise, a certificate from the General Manager or the Project Manager of the Oil and Natural Gas Commission or the Oil India Limited or as the case may be the Gas Authority of India Ltd., to the effect that such Articles have actually been received by the Oil and Natural Gas Commission or the Oil India Limited or as the case may be the Gas Authority of India Ltd., at the specified project and are intended for use in the specified project. APPENDIX Procedure to regulate the movement of the goods for manufacture and packaging of articles for export. (a)Application for obtaining the goods free of duty. - Any person intending to obtain the goods free of duty for use by him in his 100 per cent export oriented undertaking shall make an application in writing to the Assistant Collector of Central Excise in proper form to be prescribed by the Assistant Collector of Central Excise stating therein the annual quantity of the goods required and the purpose for and the manner in which such goods are intended to be used and declaring that the goods shall be used for such purpose and in such manner only. The Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise officer-in-charge of the 100 per cent Export Oriented Undertaking. Removal application in Annexure C below must be serially numbered. The serial No. should be according to the financial year. The serial No. must be noted on all the copies. Whenever any removal application has to be cited in the course of correspondence; the name of the factory, the Serial No. and date of Annexure C below should always be quoted as reference. The consignor shall however, intimate to the Central Excise officer-in-charge of the 100 per cent Export oriented undertaking about the removal of goods at least 12 hours before such removal is expected to take place. (c)Marking of the packages. - Packages to be marked and address to be noted in the application : The factory of removal (consignors) must - (i) ensure that packages bear proper marking and number, (ii) ensure that all copies of Annexure 'C' below are prominently marked "Intended for use in the undertaking approved for manufacturing 100 per cent Export oriented goods"; (iii) give the full address of the factory of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said officer and the said officer, after taking account of the goods, will identify them with the marks and numbers, and weigh the consignment in full. Thereafter, he shall complete the re-warehousing certificate on the duplicate copy received from the Central Excise Superintendent-in-charge of the factory at destination and original and triplicate copy of the applications presented by the consignee, return duplicate to the Central Excise officer-in-charge of the factory of removal direct and triplicate to the consignee for dispatch to the consigner after noting thereon the deficiency or excess, if any. (2)Duty on shortages or losses in transit. - Since the bond in Annexure A below would have been executed by the consignee, duty on shortages will be demanded from him after condoning the permissible losses in transit. For such commodity a separate schedule of losses will be formulated and issued by the Collector of Central Excise. (i)Re-entry. - If the duplicate application is received by the Central Excise Officer-in-charge of the 100 per cent Export oriented undertaking, before arrival of the goods is reported to him by the consignee, he must keep it pending, securely and sy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule (1) of rule 156B of the Central Excise Rules, 1944, if the certificate of receipt of a consignment of the goods dispatched to the consignee [as per paragraph (1)] is not received back by the consignor within 90 days of the removal of the goods or within such extended period as may be allowed by the Collector of Central Excise, it is the responsibility of the consignor to himself pay the duty leviable on the consignment by a debit entry in his account current. However, a provision has been made that in such cases where the consignor produces proof re-warehousing to the satisfaction of the Central Excise Officer-in-charge of the factory after payment of duty in the manner indicated above, he will be eligible for grant of refund on the duty so paid by making an application. The Central Excise officer-in-charge of the factory may also demand duty on a consignment the certificate in respect of which has not been received within the stipulated period. In such cases, if the consignor has already paid the duty leviable on the consignment by a debit entry in his account current, he may intimate the officer-in-charge of the 100 per cent Export oriented undertaking about the particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw materials, components, consumables etc. compendiously known as "goods" when brought into the undertaking of a licensed holder from the 100% export oriented unit approved by the Board under a certificate in form CT-3 "in connection with the manufacture of" products to be exported out of India. The said notification exempted the above goods from payment of basic excise duty and additional excise duty subject to conditions which further stipulated that exemption shall be granted only if the "goods" released from 100% export oriented unit were brought directly into the factory of the licensee and were "used in the manufacture of the products" to be exported. [See : Conditions 1(b)(c)(f), 2, 3 as well as the various Clauses in the Appendix to the notification, relevant portions of which have been underlined in bold print]. Therefore, in the preamble, which deals with removal of goods from 100% export oriented unit under CT-3 form, we find use of the words "in connection with the manufacture of" which words are wider when compared to the words in the conditions for exemption, namely, "used in the manufacture of". Reading the notification in entirety, therefore, two stipulations have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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