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TMI Blog2005 (2) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... .O.U. Due to certain circumstances they have not fulfilled the export obligation after availing duty free procurement of capital goods and other raw materials. Moreover, they cleared the goods manufactured by them to the Domestic Tariff Area (DTA) without payment of duty. The Revenue proceeded against the appellants. The adjudicating authority demanded the duty of Rs. 8,61,280/- on the goods remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capital goods in view of the non-fulfilment of the conditions of Notification No. 123/91-C.E. dated 2-6-81. The appellants are aggrieved over the following decisions :- (i) Since they had not used any imported machinery and raw material and bonafidely cleared the goods to the Domestic Tariff Area (DTA), the duty on the cleared goods should be calculated as provided in Section 3(1) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the appellants were not in a position to fulfil the export obligation in view of the various problems faced by them. The capital goods were obtained indigenously under CT-3 form without payment of duty. Once they are found that they would not be able to operate under the scheme, they applied to Government of India for withdrawal and the Govt. of India, vide order dated 4-4-96 permitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Development Commissioner are chargeable to duty under Section 3(1) of the Central Excise Act :- (i) Treasure Tech Electronics Ltd. v. CCE - 2003 (153) E.L.T. 71 (T. - Del.) (ii) Bhagat Exports v. C. Cus. - 2003 (161) E.L.T. 383 (Tri. - Mum.). 14. Shri L. Narasimha Murthy, learned SDR reiterated the findings recorded in the impugned Order-in-Original. 5. On a careful considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the duty should be charged under Section 3(1) of the Central Excise Act, 1944. In other words, the duty applicable is as in the Central Excise Tariff and not the aggregate of customs duties. In respect of the consumables procured, the duty demand is upheld. With these observations, we partially allow the appeal in the above terms. (Operative portion of the order has been pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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