The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT)has held that excise duty is not leviable on goods stored at the Plot in the Port area for anticipated export orders.
Velji P & Sons, challenged the Order-In-Appeal passed by the Commissioner (Appeals) Central Excise, Rajkot whereby the Commissioner uphold the impugned order of the Lower Authority as far as it relates to confiscation of the detained goods under Rule 25(1)(a) of the Rules along with the option to redeem the goods on payment of redemption fine of Rs. 5,00,000/-. Further confirmedtherecovery of Central Excise duty amounting to Rs.18,20,387/- under proviso to section 11A of the Act along with appropriate interest under section 11AB of the Act
The appellant M/s. Rawmin Mining and Industries Pvt. Ltd.is a 100% export-oriented unit that has cleared 444903.645 MTsof its final productnamely Beneficiated Bauxiteand stored at the plotallottedo their custom house agent and shipping agent M/s. Velji P & Sons near Porbandar Port. In respect of such clearance no document such as an export document, excise in voice or ARE- 1 was issued therefore the department contended that the excisable goods were cleared with out payment of duty and without issuing any documents which are liable to confiscation and also liable to excise duty.
The Adjudicating Authority confiscated such goods and demanded excise duty and imposed penalties on all the appellants. The Commissioner (Appeals), in appeals filed beforehim, upheld Order-In-Originalexcept for reducing the penalty in respect of appellant Shri Bhavin HariharbhaiThanki and M/s. Velji P & Sons.
It was contended that thegoods were stored at the plotin theportarea because the appellants were anticipating an export order for the saidquantity of goods. The goods were not meant forclearancein the DTA and they were never divertedto the DTA unit.
A Coram comprising of Mr Ramesh Nair, Member (Judicial) observed that the appellant’s claim that the goods which were confiscated have been finally exported, on such goods excise duty is not charge able is not valid since the subsequent event of export of goods has not been considered. The Tribunal set aside the impugned order and remanded the matter to Adjudicating Authority for passing a fresh order preferably with in a period of two months from the date of this order.
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