POOJA CREATIONS LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS appeal has been filed against Order -in -Appeal No. 120/2004 -Cus (B) dated 16 -11 -2004 passed by the Commissioner of Customs (Appeals), Bangalore.

(2.) THE appellants are a 100% EOU. In view of adverse market conditions, they wanted to go out of the scheme of 100% EOU. Therefore, they approached the Development Commissioner, who issued a letter dated 27 -3 -2002 permitting the appellant unit to withdraw from 100% EOU scheme. Consequently, duty of Rs. 2,09,433/ - was paid, being duty on the capital goods procured free of duty. Even though, the duty was paid, the goods continued to be in the bonded warehouse. They had only shifted to their additional bonded premises under Customs escort. Since the market conditions improved, the appellant unit continued to function as 100% EOU. Hence, they applied for refund of duty paid by them. The Dy. Commissioner allowed the claim on the ground that the goods are not actually removed from the EOU, as certified by the field officers. Revenue was aggrieved over the decision of the Dy. Commissioner on the grounds that once the unit is de -bonded, there is no provision for re -bonding, hence appeal was filed before the Commissioner (A). The Commissioner (A) has categorically held that there is no provision for re -bonding. He allowed the Department's appeal. The appellant is aggrieved over the impugned order.

(3.) SHRI K. Krishnamurthy, learned Consultant appeared for the appellants. He said that though the unit got the permission for de -bonding, the appellant did not complete the exit formalities as per EXIM policy. They continue to function as 100% EOU and therefore, the grant of refund is in order.