POWERICA LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) APPELLANT was working under 100% EOU scheme. They were holding a Customs Private Bonded Warehouse and In Bond Manufacture Licences under Sections 58 and 65 of the Customs Act, 1962 for the manufacture of Diesel Generating Sets.

(2.) THEY obtained permission from the Asstt. Commissioner of Customs for inter unit transfer of Two Diesel Generating sets to another 100% EOU and transferred the same on obtaining, filling the required documents on 27 -4 -95 and got a re -warehousing certificate on 12 -5 -95, from the Superintendent in charge of the consignee EOU. However a notice of demand of Customs duty of Rs. 1,72,500/ - was issued on 16 -10 -95, as it appeared that these Diesel Generating Sets manufactured In -bond and cleared on Ex -Bond shipping bill under Section 67 of the Customs Act read with Para 109 of EXIM Policy 1992 -97 were not entitled to the benefit of Notification 126/94 -Cus., dt. 3 -6 -94 or and Notification 136/94 -C.E., dt. 10 -11 -94, was applicable to floriculture units as the consignee was. The lower authority has confirmed the demands, as made under Section 28 of the Customs Act, 1962.

(3.) WE have heard both sides and considered the submissions and find :