BAPL Industries Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The Tribunal in the case of Shree Rohini Enterprises – 2017 (346) ELT 461 (Tri-Ahmd.) held that value of deemed export is to be treated as export sale determined on FOB value of export. The same was confirmed by the Supreme Court reported in 2017 (346) A137 (SC).
From the decisions cited above, it is clear that value of deemed export have also to be included for computing (FOB) value of exports. Following the same, we are of the view that the demand raised alleging that appellant has exceeded DTA sale entitlement is without any basis. The demand cannot sustain on merits.
FULL TEXTS OF THE ORDER OF CESTAT CHENNAI
Brief facts of the case are that the appellants who are a 100% EOU and holding Central Excise Registration was found to have cleared goods into Domestic Tariff Area (DTA) beyond their entitlement and without payment of appropriate duty. Show cause notices were issued proposing to demand the differential duty along with interest and for imposing penalties. After due process of law, the original authority confirmed differential duty along with interest and held the goods liable for confiscation. Penalties were also imposed. Aggrieved by such orders, the appellants are now before the Tribunal.
2. Ld.Counsel Shri M. Karthikeyan appeared and argued for the appellant. His arguments are as under :
2.1. Appellant is an EOU engaged in the manufacture of cotton yarn, etc. As per the EXIM Policy 1997-2002, EOUs were entitled to clear 25% of the value of production in DTA during the year 1998-99 and 50% of FOB value of Exports exports from 1999-2000 onwards. The Development Commissioner (DC) had permitted them to make the following DTA Sales during the year 1998-99 to 2001-02 based on the physical exports made by the appellant.
