The Letter of Intent dated December 19, 1991 was issued to the appellant for the purpose by the Secretariat for Industrial Approvals SIA , Ministry of Industry, Government of India.
Aggrieved appellant filed an appeal before the Collector of Central Excise Appeals under Section 35 of the Act.
On September 8, 1993 appellant made an application to the Secretary, Ministry of Commerce, Government of India and sought debonding of its unit from 100 EOU, i.e., withdrawal from 100 EOU Scheme.
As regards surrender of Letter of Permission No.
When the appellant received letter dated October 18, 1993 from the Ministry of Commerce it approached the Assistant Collector of Central Excise for valuing the goods and the duties of customs and central excise payable.
Ministry of Textiles AMMT Section , Udyog Bhawan, New Delhi.
Now it was the Revenue which felt aggrieved.
P.B. No.1844, 1977 A, Trichy Road, Singanallur, Coimbatore 641 005.
PER163 91 E.O.235 91 IL MRTP, dated 18.12.1991, a separate companymunication will follow from the Administrative Ministry viz.
It was also pointed out that the letter was being issued to enable the appellant to work out various modalities with the Customs Authorities and start for switching over from 100 EOU to DTA and to enable it to obtain release dispose of the stocks/ inventories on payment of applicable duties.
Appellant was also informed that the assessment had been done on a provisional basis.
However, in respect of applicability of proviso to Section 3 1 of the Act Assistant Collector of Central Excise decided the issue against the appellant and accordingly companyfirmed the duty demanded.
By letter No.
O.335 91 IL MRTP dated November 3, 1993 from the Government of India in the Ministry of Industry, Department of Industrial Development, Secretariat for Industrial Approvals SIA to the appellant it was agreed in principle to allow the appellant to withdraw from 100 EOU Scheme subject to companyditions mentioned in the annexure to the letter.
This letter took numbere of the fact that on the basis of the provisional assessment by the Assistant Collector of Central Excise appellant had deposited the amount of duties of customs and central excise and the appellant had also been allowed to clear the finished stock lying with it in its stock as on November 16, 1993 as well as the production from December 8, 1993 onwards on provisional basis.
Please acknowledge receipt.
12/335/91 EP dated October, 1993 from the Government of India in the Ministry of Commerce, appellant was told that its request for debonding of the unit was companysidered by the Board of Approvals BOA for 100 EOUs in its meeting and had been recommended for approval subject to numbermal companyditions of debonding.
Yet another companyrigendum was issued to the show cause numberice by the Assistant Collector of Central Excise on February 21, 1994.
Subject Letter of permission No.
By his order dated March 31, 1994 Assistant Collector of Central Excise passed his order in original in which he agreed with the appellant to the extent that the date of debonding should be taken as November 15, 1993 when the appellant paid the applicable duties and number February 2, 1994 when formal letter of debonding was issued by the Ministry of Textiles.
Appellant was informed by the Assistant Collector of Central Excise by his letter No.
By letter dated October 18, 1993 of the Ministry of Commerce it was agreed in principle to allow the appellant to withdraw from the 100 EOU Scheme subject to the companyditions on which withdrawal was permitted and as mentioned in annexure to the letter.
Collector of Central Excise filed appeal before the Appellate Tribunal against the order of the Collector of Central Excise Appeals under Section 35B of the Act.
Once the debonding of the unit is permitted, finished goods earlier manufactured in the 100 EOU companyld be cleared for Domestic Tariff Area DTA on levy of duty of Central Excise.
A companyrigendum dated February 14, 1994 was issued by the Assistant Collector of Central Excise to the show cause numberice seeking number to demand duty in respect of clearance made from November 16, 1993 to February 1, 1994 under proviso to Section 3 1 of the Act after deducting the duties already paid by the appellant.
After the appellant had been allowed in principle to withdraw from the 100 EOU Scheme by letter dated November 3, 1993 of the Ministry of Industry it had recognised its manufacturing activities as a DTA unit from December 6, 1993.
By letter No.
Collector of Central Excise Appeals agreed with the appellant and decided the issue in its favour thus allowing the appeal.
VIII/48/3/92 Cus dated November 15, 1993, had been paid and which amounted to Rs.6,62,70,540.76.
PER163 91 E.O.335 91 IL MRTP , dated 18.12.1991 was granted to you for the manufacture of viscose staple fibre for an annual capacity of 18,000 tonnes.
On February 2, 1994 a formal letter was issued by the Ministry of Textile in the Government of India debonding the appellants unit and permitting it to operate as a DTA unit.
dated November 8, 1993 that value of the goods and duties have been worked out and it was asked to pay the same.
The dispute in the present case companycerns the finished goods which had been manufactured prior to the date of debonding of 100 EOU of the appellant.
All further companyrespondence in the matter, if any, may please be addressed to the Administrative Ministry viz.
By order dated November 5, 1997 which is impugned, Tribunal allowed the appeal of the Revenue holding that it was the proviso to Section 3 1 of the Act, which was applicable.
In case the undertaking has availed of the facility of external companymercial borrowings, the same shall be disinvested before the issue of final debonding letter.
After you have companyplied with the companyditions mentioned in the Annexure, you may approach your Administrative Ministry for issue of final debonding letter.
The undertaking shall also deposit a penalty of 10 of the cif value of imported capital goods, towards number fulfillment of export obligation, with the import licensing authority with whom it had executed a legal undertaking in respect of the 100 Export Oriented Unit.
This application of the appellant, therefore, companyld number be treated as an application for permission to sell in India as companytended by the Revenue and the debonding letter of the BOA cannot be companystrued as permission to sell in India.
Ministry of Textiles AMMT Section, Udyog Bhawan, New Delhi.
Yours faithfully, Sd Baldev Raj Under Secretary to the Government of India.
Annexure STANDARD CONDITIONS GOVERNING WITHDRAWAL FROM 100 EOU SCHEME The undertaking shall pay all customs and excise duties on the imported and Indigenous capital goods, raw materials, companyponents, companysumables and spares in stock as well as on the finished goods in stock, together with all penalties and other charges as per Customs Act and Rules, before the issue of final debonding letter.
VIII/48/3/92 Cus.
It was stated that formal letter would be issued by SIA in due companyrse.
E.O.335 91 IL MRTP Government of India Ministry of Industry Department of Industrial Development Secretariat for Industrial Approvals EOU SECTION New Delhi, the 3rd November, 1993 M s. South India Viscose Limited.,
This penalty shall be paid before the issue of final debonding letter.
There is numberdispute that whole of the duties of customs and central excise as demanded by the Assistant Collector of Central Excise in his letter No.
PER163 91 /E.O.335 91 IL MRTP , dated 18.12.1991 issued for the manufacture of viscose staple fibre under 100 Export Oriented Scheme Debonding of the unit.
It is also number disputed that all the companyditions stipulated in the letter dated November 3, 1993 of the Government of India in the Ministry of Industry, Secretariat for Industrial Approvals SIA have also been companyplied with by the appellant.
O.335/91 IL MRTP Gentlemen, I am directed to refer to your letter addressed to Ministry of Commerce EP Section on the above subject and to say that in the circumstances explained therein, Government of India agree, in principle, to allow you to withdraw from the 100 Export Oriented Scheme, for which letter of permission No.
Appellant was granted permission to set up a 100 Export Oriented Unit EOU for the manufacture of viscose staple fibre at its factory at Sirumugal in Coimbatore District in the State of Tamil Nadu.
P. WADHWA, J. This appeal is directed against the order dated November 5, 1997 of the Customs, Excise and Gold Control Appellate Tribunal for short the Tribunal allowing the appeal of the respondent and directing that duty of Central Excise was payable under Section 3 1 of the Central Excise and Salt Act, 1944 for short the Act and number under proviso to Section 3 1 of the Act as claimed by the appellant.
