Same Deutz Fahr India (P) Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
Benefit duty import allowed when goods jointly imported financing company EOU
The CESTAT, Chennai in the case of M/s. Same Deutz – Fahr India (P) Ltd. v. Commissioner of GST & Central Excise (Customs Appeal No.42175 of 2014, dated May 26, 2023) allowed the Export Oriented Unit (“EOU”) and financing company jointly to enjoy the benefit of no duty imports when imported goods used by EOU.
Facts:
M/s. Same Deutz-Fahr India (P) Ltd. (“the Appellant”) is an EOU and is engaged in manufacturing of tractors and its accessories. The Appellant’s job worker M/s. Amul Industries Pvt. Ltd. (“M/s. AMUL”) imported 3 machineries cumulatively valued at INR 4,95,05,655/- on behalf of the Appellant. However, the Bill of entry was filed by the Appellant.
The machines were cleared by the Appellant by availing the benefit of Notification No. 52/2003-Cus. dated March 31, 2003 (“the EOU Notification”) i.e. without payment of custom duty when goods will be put to use by EOU for manufacturing goods for export.
The proper officer issued the notice levying demand of INR 1,41,78,027/- on the Appellant on three grounds firstly, the import documents were not filed by the Appellant and M/s. AMUL, secondly, the bond for fulfilment of conditions of the EOU Notification was not filed by the Appellant and the M/s. AMUL jointly and lastly that, the agreement between the Appellant and M/s. AMUL was of Principal and job worker and not of lessor and lessee. The demand was confirmed by the Commissioner vide Order-in-Original No. 1/2014 (Cus.) dated June 30, 2014 (“the Impugned Order”).
Aggrieved by the Impugned Order the Appellant filed an appeal before the CESTAT, Chennai.
Issue:
Whether the machineries imported are eligible for the benefit of the EOU Notification?
Held:
The CESTAT, Chennai in [Customs Appeal No.42175 of 2014] held as under:
