Commissioner of Central Excise Vs Elentec India Pvt. Ltd. (CESTAT Allahabad)
The matter concerned three appeals arising from orders passed against two units of M/s Elentec India Pvt. Ltd., a 100% Export Oriented Unit (EOU) engaged in manufacturing battery chargers and parts/components of mobile phones. Two Revenue appeals challenged orders dropping demands of ₹36.39 crore and ₹50.62 crore for the period 16.03.2015 to 31.12.2015, while one assessee appeal challenged confirmation of a demand of ₹8.05 crore for the period 01.01.2016 to 29.02.2016.
According to the Revenue, the respondent imported raw materials without payment of customs duty under Notification No. 52/2003-Cus. and procured indigenous inputs without payment of central excise duty under Notification No. 22/2003-CE. These materials were used to manufacture battery chargers and mobile phone parts cleared into the Domestic Tariff Area (DTA) at nil duty under Notification No. 12/2012-Cus. The Department alleged that the respondent failed to pay an amount equivalent to the customs and excise duties foregone on the imported and indigenous inputs, as allegedly required by the conditions of the EOU notifications. Show cause notices sought recovery of duties, interest, and penalties under Sections 28(4), 28AA and 114A of the Customs Act, 1962, and Sections 11A(4), 11AA and 11AC of the Central Excise Act, 1944.
