UNIWORTH LTD [OPEN END DIVISION] Vs. COMMISSIONER OF CUSTOMS & CENTRAL EXCISE CENTRAL EXCISE BUILDING

JUDGEMENT

(1.) This appeal under Sec. 130 of the Customs Act, 1962 (for brevity 'the Act, 1962') was heard on the following substantial question of law :

(2.) The facts necessary giving rise to this appeal for answering the substantial question of law are that the appellant was granted the letter of permission as 100% Export Oriented Unit (for brevity 'EOU') for manufacture and export of wool yarn. The appellant has two divisions of the said 100% EOU, one at Butibori, Nagpur (Maharashtra) and another at Raipur (Chhattisgarh). Appellant imported second hand machinery and claimed exemption from Excise Duty under Customs Notification No.53/97 dated 3-6-1997 for installation and use at Nagpur unit. The goods were cleared by filing two Bills of Entry and warehoused at Nagpur unit on 27-11-1997. Under permission from the Assistant Commissioner, Nagpur, the appellant transferred the said machinery to its Raipur unit, the shifting and rewarehousing at Raipur unit was done in April, 2000.

(3.) On receiving intelligence input to the effect that the appellants were misusing the benefits of exemption granted to EOU, the officers of the Directorate General of Central Excise Intelligence (DGCEI) visited appellants Raipur unit and during verification noticed that the machinery remained uninstalled even in the month of March, 2005.