EOU Exemption Cannot Be Denied for Capital Goods Used in Integral Quarrying Operations: CESTAT Bangalore

Gem Granites Vs Commissioner of Central Excise (CESTAT Bangalore) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore allowed the appeal filed against an Order-in-Original dated 26 March 2013, which had confirmed customs and central excise duty demands on a 100% Export Oriented Unit (EOU) engaged in the manufacture of granite products. The Revenue alleged that duty-free imported and indigenously procured capital goods were used for quarrying granite blocks at the appellant’s quarry in Balakundi, Karnataka, instead of being used for manufacturing operations in the...