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TMI Blog2003 (12) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ms Act is not sustainable. Accordingly, we set aside the impugned order and allow the present appeal. However, we make it clear that revenue authorities will be at liberty to demand duty on the imported inputs, if any, used in the production of the cut-flowers in question. The appeal is disposed of as above. - S/Shri C.N.B. Nair, Member (T) and P.G. Chacko, Member (J) [Order per : C.N.B. Nair, Member (T)]. - The appellant is an EOU. It produces cut rose flowers for export. It is also entitled to selling part of the produce, as permitted by the Development Commissioner, in the domestic tariff area. 2. The Commissioner of Customs and Central Excise, Central Excise Commissionerate, Delhi-III has demanded a customs duty of about Rs. 88 lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viso to Section 3 of the Central Excise Act, 1944. However, the same is applicable if the goods being cleared into DTA are excisable goods. Under the present dispensation, the notifications providing duty free import of goods under the above said Schemes stipulate that where the finished products (including rejects, wastes scrap) sought to be cleared in DTA are not excisable, such products are allowed to be cleared on payment of customs duty on the inputs used for the purpose of production, manufacture, processing or packaging such products in an amount equal to the customs duty leviable on such products as if imported as such. 26. It has been brought to notice of the Board that in some Commissionerates, the floriculture units under the EOU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the learned Consultant, the duty demandable in respect of non-excisable products sold to DTA from an EOU, is the customs duty on the inputs used for the purpose of production/manufacture or packaging such product and not the customs duty leviable on the finished products. It is the submission of the learned Consultant for the appellant that, in the present case as a matter of fact, no imported inputs have been used for the purpose of producing the cut-flowers sold to the domestic area and no duty demand is due under Notification No. 126/94-Cus dated 3-6-1994 relied upon by the learned Commissioner while passing the order. 4. We have perused the records and heard the learned SDR also. The learned SDR has referred to a Circular No. 78/95, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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