Demand of excise duty in respect of semi-finished goods not sustainable

Blue Mount Textiles Vs CCE (CESTAT Chennai) CESTAT Chennai held that the demand of duty in respect of semi­finished goods cannot sustain. Accordingly, the duty paid thereon is duly refundable. Facts- During the year 2011, they intended to exit the EOU scheme. They obtained an ‘in principle’ exit permission from MEPZ, Chennai and then, worked out the duty incidence. The appellants, thus, remitted the duty on both imported goods as well as indigenously procured excisable goods and goods in the nature of finished and semi-finished goods produced and held as stock on the date of de-bonding of...