In a major relief to M/s. DCM Hyundai Ltd, the appellant, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the tipper bodies which is 100% Export Oriented Units (EOU) cleared into Domestic Tariff Area (DTA) are eligible for the benefit of concessional rate of duty.
The appellant is a 100% EOU and sought permission to manufacture and export excisable goods namely marine freight containers, bodies (including cabins), trailers and semi-trailer etc. On verification of sales invoices, it was seen that the appellants had sold in DTA, the goods in the nature of ‘tipping body’ and steel structures availing payment of concessional duty vide Notification No.23/2003 CE dated 31.03.2003.
It appeared to the Department that the appellant had contravened the provisions of para 6.8 (a) of the Foreign Trade Policy in as much as the appellant had not cleared to DTA, the products similar to the goods which were exported by the unit.
In such re-adjudication the original authority held that the steel structures sold in DTA are eligible for concessional rate of duty. However, the original authority dis-allowed the concessional rate of duty in regard to tipping bodies. Aggrieved by such order, the appellant filed an appeal before the Commissioner (Appeals) who upheld the order passed by the original authority and hence the present appeal.
The counsel for the appellant submitted that the process adopted for the manufacture of tipper body cleared for DTA and process adopted for the manufacture of other containers including open top container exported by the appellant as EOU are the same. Therefore, tipper body is nothing but similar product to open top container.
The counsel urged that once the No Due Certificate under Final Exit Order has been issued, subsequently show cause notice proposing to deny the benefit of notification availed by the appellant as an EOU is without jurisdiction and not sustainable.
The Bench of Sulekha Beevi CS, Judicial Member and Vasa Seshagiri Rao, Technical Member observed that “It can be seen that the open top containers exported by the appellant is similar to the tipper body used for transportation. It is not necessary that the goods cleared into DTA have to be identical to the goods exported by the EOU. Further, permission has been granted by the MEPZ to clear containers which are similar. We therefore find that the denial of the benefit of the notification is not justified.”
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