FUTURA POLYMERS Vs. CCE

JUDGEMENT

(1.) HEARD both the sides.

(2.) THESE applications filed by the applicants for waiver of pre -deposit of duty and penalty.

(3.) THE brief facts of the case are that the appellants are 100% EOU engaged in the manufacture of Polyethylene Terepthalate Chips. The appellants were clearing Polyethylene Terepthalate Chips for manufacture of performs on stock transfer basis from 100% EOU Division to Perform Division and were availing the benefit of Notification No. 2/95 dated 4.1.95. The appellants were determining the assessable value of the chips which were cleared on stock transfer basis to other division on the basis of FOB price of performs exported. The show cause notice was issued to the appellants for demand of differential duty by denying the benefit of above Notification No. 2/95 on the ground that the notification is not applicable to the goods cleared on stock transfer basis as there was no sale involved. The notice also proposed to demand differential duty alleging that the FOB value adopted for payment of duty for transferring of the PET chips to the Performs Division was not correct. The adjudicating authority denied the benefit of Notification No. 2/95 and confirmed the demand and imposed the penalty on them.