SAMI LABS LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Appeal No. 74/2006 dated 29 -5 -2006, passed by the Commissioner of Customs (Appeals), Bangalore.

(2.) THE appellants are 100% E.O.U. manufacturing herbal extracts, chemicals etc. Due to fire accident, in their premises on 20 -11 -2004, certain capital goods, raw materials, work in progress and semi -finished goods both imported and indigenously procured were destroyed. The Revenue proceeded against the appellants demanding both Customs and Excise duty on the goods destroyed. However, the lower authority dropped the proceedings. The Revenue, aggrieved over the decision of the lower authority, appealed to the Commissioner (Appeals) on the ground that the Respondent had not manufactured and exported out of the raw materials destroyed in the fire accident and therefore, in terms of Rule 6 of Central Excise (Removal of Goods at Concessional Rate of duty for Manufacture of Excisable Goods) Rules, 2001 read with Notification No. 22/03 dated 31 -3 -2003 and therefore, they are liable to pay the Central Excise duty. In respect of the dropping of demand of Customs duty, the Revenue accepted the decision of the lower authority. The Commissioner (Appeals) allowed the Revenues appeal on the ground that even if the goods were in work in progress, they are covered by Rule 6 of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 and hence, the duty is demanded. The appellants are highly aggrieved over the impugned order.

(3.) SHRI K. Subramanian, Sr. Manager of the appellants unit appeared for the appellants. He urged the following points :