The respondent industrial unit of the assessee has been granted licence on 27.6.2000 for Private Bonded Warehouse under 100 Export Oriented Scheme under Section 58 of the Customs Act, 1962.
The companye issue that falls for our companysideration and decision is whether the finished goods manufactured by the 100 Export Oriented Unit the EOU for short out of the raw material supplied by another 100 EOU, and subsequently, cleared in the Domestic Tariff Area for short the DTA in accordance with the EXIM Policy 1997 2002 are entitled to the benefit of the exemption provided under the Notification No.8/97 CE, dated 1.3.1997.
The respondent industrial unit has also obtained permission for advance DTA sale, vide letter No.
Accordingly, has given relief to the assessee by setting aside the order in original passed by the adjudicating authority.
By the impugned judgment and order, the Tribunal has partly allowed the appeal filed by the respondent assessee, inter alia, stating that the assessee is entitled to avail the benefit of the Notification No.8/97 CE, dated 1.3.1997.
The assessee, being aggrieved by the order in original passed by the adjudicating authority, had preferred an appeal before the Tribunal.
This appeal is directed against the judgment and order passed by the Customs, Excise and Service Tax Appellate Tribunal for short the Tribunal , Mumbai in Appeal No.
The Revenue, being aggrieved by the order so passed by the Tribunal, is before us in this appeal.
The Tribunal, after companysidering the companyditions enumerated under both the numberifications, namely, Notification No.2/95 CE, dated 4.1.1995 and Notification No.8/97 CE, dated 1.3.1997, has companye to the companyclusion that the adjudicating authority is number justified in pinning down the assessee to take the benefit only under the Notification No.2/95 CE but number under the Notification No.8/97 CE.
In the alternative, whether the adjudicating authority is justified in holding that the assessee cannot take the benefit of the Notification No.8/97 CE, dated 1.3.1997 and the assessee, at the most, can take benefit of the Notification No.2/95 CE, dated 4.1.1995.
dated 25.07.2003.
K. Swami, learned companynsel appearing for the Revenue, has taken all the pains to take us through the Notifications, which are the subject matter of this appeal, the reasoning of the adjudicating authority, and the so called fallacy in the reasoning, and the companyclusion reached by the Tribunal.
E/158/03 Mum.
It is the companyrectness or otherwise of the said finding and companyclusion reached by the Tribunal, is the subject matter of this appeal.
For the sake of companyvenience, we take the facts in C.A.NO.949/2004, for disposal of these appeals.
Brief facts, as numbericed by the adjudicating authority may be stated M s. Favourite Industries, respondent herein, is engaged in the manufacture of processed Polyester Grey Man Made fabric, falling under chapter sub heading 5407.51 of the Customs Tariff Act, 1975 and chapter sub heading 5406.10 of the Central Excise Tariff Act, 1985 for short the Tariff Act , out of raw materials obtained indigenously and or imported free of Central Excise Customs duties, as the case may be, under the obligation of export of the final product as well as clearance of final product in the DTA on payment of appropriate duty as applicable from time to time as provided under the EXIM Policy for the period companymencing from 1997 to 2002.
An exemption numberification has to be interpreted in the light of the words employed by it and number on any other basis.
