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Exemption (Contd.)
— to medical equipment under Notification No. 64/88-Cus. cannot be
denied for failure to fulfill post import conditions - See under MEDICAL
EQUIPMENT ..................................... 88
— under Notification No. 89/95-C.E. admissible to Fatty acid, Wax and Gum
arising during manufacture of refined vegetable oil - See under WASTE ... 142
Exemption Notifications - Scope of - Such notifications only grant
exemption from payment of duty from tariff - These notifications do not
impose Customs duty - Article 226 of Constitution of India — Adani Power
Ltd. v. Union of India (Guj.) ................................ 60
EXIM - DTA clearances by EOU - Clearance of goods manufactured on basis
of job work - C.B.E. & C. Circular Nos. 67/98-Cus., dated 14-9-1998 and
74/99-Cus., dated 5-11-1999 initially restricting facility of undertaking job
work by EOU/EPZ to specific sectors amended by C.B.E. & C. Circular
No. 49/2000-Cus., dated 22-5-2000 permitting EOU to undertake job
work in all sectors - All transaction between EOU and DTA entered into
after necessary permission obtained from Development Commissioner -
Clarification by Joint Development Commissioner that no bar on such
activity under EXIM Policy - In terms of paragraph 9.9(b) of EXIM Policy,
1997-2002, Circulars issued by Board, particularly C.B.E. & C. Circular
No. 49/2000-Cus., dated 22-5-2000 and reply to query of Customs
Authorities by Development Commissioner, SEEPZ assessee entitled to
carry out job work on behalf of DTA on payment of duty as provided
under Notification No. 8/97-C.E. - Such clearance also supported by
clarification in C.B.E. & C. Circular No. 38/2003­Cus., dated 6-5-2003 -
Contention that combined reading of proviso to Sections 3(1) and 5A(1)
of Central Excise Act, 1944 would not entitle Central Government to
grant any exemption to an EOU when it brings goods to any other place
in India (i.e. DTA) not sustainable - Such interpretation would render
words “unless specifically provided in such notification” in Section 5A(1)
ibid otiose - Harmonious construction of Section 5A(1) ibid and proviso
thereto would be that EOU which brings excisable goods to any other
place in India would not be entitled for a general exemption notification
unless specifically provided in such a notification - Such exemption
provided under Notification No. 8/97-C.E. as amended by Notification
No. 21/97-C.E. - Transaction between assessee and DTA unit satisfying
all three conditions required under said notification - 2001 Amendment
to Section 5A ibid brought clause (ii) of sub-section (1) of Section 5A ibid
in sync with words used in clause (i) of proviso to said section and words
used in proviso to Section 3(1) ibid - No conflict in amended provisions
of clause (ii) of proviso to Section 5A(1) ibid and said exemption
notification - Sales made by EOU to DTA unit within permissible limits
and with permission of Development Commissioner - Finding of
Tribunal in 2015 (321) E.L.T. 462 (Tribunal) that benefit of clearance at
rates applicable under Notification No. 8/97-C.E. could be denied to
assessee, affirmed — Commr. of C. Ex., Nagpur v. Universal Ferro & Allied Chemicals
Ltd. (S.C.) ........................................ 14
Export Oriented Unit clearance in DTA of goods manufactured on basis of
job work, scope of - See under EXIM ........................ 14
— clearing goods in DTA, scope of exemption Notification No. 8/97-C.E. -
See under EXEMPTION ............................... 14
— to DTA units for job work whether amounts to Sale - See under SALE ...... 14
EXCISE LAW TIMES  1st April 2020  65