M\/s. ABI Showatech India Ltd. Versus Commissioner of GST & Central Excise
Customs
2019 (2) TMI 1186 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 19-2-2019
Appeal No. E\/363\/2011 – Final Order No. 40320 \/ 2019
Customs
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial) And Hon'ble Shri Madhu Mohan Damodhar, Member (Technical)
\nShri S. Murugappan, Advocate for the Appellant
\nMs. T. Usha Devi, DC (AR) for the Respondent
\nORDER
\nPer Bench
\nThe facts of the appeal are that the appellants M\/s. ABI Showatech India Ltd. are 100% EOU with green card for manufacture and export of precision automotive components, ancillaries, turbo chargers and parts thereof, casting and tools, dies and moulds, jigs and fixtures. The appellants exported some quantity of bearing housings and large quantity of precision automotive components (cylinders). In DTA, they cleared large quantity of bearing housing. On scrutiny of records, it appeared to the department that in terms of para 6.8(a) <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nces = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n licy. Hence assuming but not admitting there is doubt the matter can be referred to DGFT\/Development Commissioner. In this regard, he relied on Greatship (India) Ltd. Vs. Union of India reported in 2016 (338) ELT 545 (Del.). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n omobile components. For appreciation para 6.8(a) of Foreign Trade Policy is reproduced as under:- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" M\/s. ABI Showatech India Ltd. Versus Commissioner of GST & Central ExciseCustoms2019 (2) TMI 1186 – CESTAT CHENNAI – TMICESTAT CHENNAI – ATDated:- 19-2-2019Appeal No. E\/363\/2011 – Final Order No. 40320 \/ 2019CustomsHon'ble Ms. Sulekha Beevi C.S., Member (Judicial) And Hon'ble Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Murugappan, Advocate for the Appellant Ms. … Continue reading “M\/s. ABI Showatech India Ltd. Versus Commissioner of GST & Central Excise”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-16914","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16914"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16914\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nDTA clearances as a % of FOB value of exports
\n25135
\n7,03,86,720
\n280035%
\n209052935
\nNil<\/p>\n
\nIt appeared to the Department that value of DTA clearances of bearing housing machined (parts of turbo charger) is more than the prescribed limit of 90% of the FOB value of exports; that appellant had cleared bearing housing machined into DTA at concessional rate of duties in excess of their entitlement in terms of para 6.8(a) of FTP 2009 – 2014 and in contravention of the conditions stipulated in Sl. No. 3 of Notification 23\/2003-CE dated 31.3.2003. Hence, show cause notice was issued to the appellant inter alia proposing differential duty of Rs. 62,51,633\/- with interest thereon on the value of clearances of bearing house machined (parts of turbo charger) into DTA for the period from April 2009 to March 2010. In addition, the Commissioner vide the impugned order dated 31.3.2011 confirmed the proposed demand with interest and also imposed penalty under Rule 25(1) of the Central <\/p>\n
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\n3.5 Even if there is any non-payment, it can be due to interpretation of the policy provisions. Hence, imposition of equal penalty under Rule 25(1) cannot be sustained.
\n4. On the other hand, ld. AR Ms. T. Usha Devi supports the findings in the impugned order. She pointed out that the appellant have made one export of 50 numbers of bearing house machined for the FOB value of Rs. 25,135\/- during the impugned period. Hence accrual of the DTA entitlement that could have happened through the physical exports of the said bearing housing would be only 90% of such FOB value and not the combined FOB value of exports for both the products.
\n5. Heard both sides.
\n6.1 The first allegation is that Bearing Housing and Precision Automotive components are not similar goods withi<\/p>\n
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\nDTA Sale of Finished Products \/ Rejects \/ Waste \/ Scrap \/ Remnants and by-products
\n6.8
\nEntire production of EOU \/ EHTP \/ STP \/ BTP units shall be exported subject to following:-(a) Units, other than gems and jewellery units, may sell goods upto 50% of FOB value of exports, subject to fulfillment of positive NFE, on payment of concessional duties. Within entitlement of DTA sale, unit may sell in DTA, its products similar to goods which are exported or expected to be exported from units. However, units which are manufacturing and exporting more than one product can sell any of these products in to DTA, upto 90% of FOB value of export of the specific products, subject to the condition that total DTA sale does not exceed the overall entitlement of 50% of FOB value of exports for the unit as stipulated above.
\n6.2 Thus, it can be seen that within entitlement of DTA sale, unit may<\/p>\n
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