Case Law Details
Commissioner of Central Excise Vs Sheena Textiles Limited (CESTAT Ahmedabad)
Introduction: This article delves into the recent order by CESTAT Ahmedabad, addressing the dispute between the Commissioner of Central Excise and Sheena Textiles Limited regarding duty-free imported machinery. The case revolves around alleged violations of conditions for exemption and the subsequent actions taken by the authorities.
Detailed Analysis:
Background and Allegations: Sheena Textiles Limited, engaged in manufacturing cotton products, obtained approval for a 100% Export-Oriented Unit (EOU) and imported used textile machinery. The dispute arises from the alleged failure to fulfill conditions, leading to a show cause notice. Charges include recovering customs duty, confiscation of machinery, imposing penalties, and recovering interest.
Conditions of Exemption: The machinery import was assessed at a nil rate of duty under Notification No. 53/1997-Cus. Conditions included fulfilling export obligations and installing or using capital goods within a specified time frame. Failure to meet these conditions could result in recovering the duty foregone, among other penalties.
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