Appeal Nos. E/11955-11959/2014, Application Nos. E/MA(Extn)/10036-10040/2015 (Arising out of OIO-DMN-EXCUS-000-COM-032-13-14 dated 27.02.2014, passed by Commissioner (Appeals) Central Excise, Service Tax & Customs, Daman) and Order Nos. A/11417-11421/2015. Case: Tropical Clothing Company Pvt. Limited Vs Commissioner of Central Excise & S.T.. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Appeal Nos. E/11955-11959/2014, Application Nos. E/MA(Extn)/10036-10040/2015 (Arising out of OIO-DMN-EXCUS-000-COM-032-13-14 dated 27.02.2014, passed by Commissioner (Appeals) Central Excise, Service Tax & Customs, Daman) and Order Nos. A/11417-11421/2015 |
| Counsel | For Appellant: Prakash Shah, Advocate and P.P. Shah, Chartered Accountant and For Respondents: J. Nagori, Authorised Representative |
| Judges | P.K. Das, Member (J) and P.M. Saleem, Member (T) |
| Issue | Excise |
| Judgement Date | October 13, 2015 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
P.M. Saleem, Member (T), (West Zonal Bench At Ahmedabad)
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All these appeals are arising out of the common Order-in-Original No. OIO-DMN-EXCUS-000-COM-032-13-14 dated 27.02.2014. Hence, all the appeals are taken up together for disposal.
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The Commissioner of Central Excise & Customs, Daman adjudicated five show cause notices and confirmed the demand of duty of Rs. 15,50,78,145/- alongwith interest and imposed penalty of equal amount of duty demanded. He also confiscated the excisable goods valued at Rs. 1,34,52,40,271/- and imposed redemption fine of 35 Crores in lieu of confiscation of the readymade garments exported by the appellants. The adjudicating authority also imposed penalty of Rs. 10 Lakh under Rule 25 of the Central Excise Rules, 2002. Aggrieved by the said order, the appellants filed these appeals.
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The brief facts of the case are that the appellants are a unit situated in village Antalia, Billimora in District Navsari, Gujarat and are engaged in the manufacture of readymade garments bearing brand name or trade-name of another person i.e. M/s. Marks & Spencer. 95% of their goods are exported to their overseas buyer M/s. Marks & Spencer and their local clearance of readymade garments does not exceed 5% of their export turn-over during a year. The issue to be decided was whether the allegations levelled in the show cause notices regarding contravention of procedures, conditions and provisions specified under Rule 18/Rule 19 of the Central Excise Rules, 2002 read with Notification No. 42/2001-CE (NT) dated 26.6.2001 by the appellants for export of excisable goods are proper or otherwise and whether; owing to such omission, suppression, lapses and contraventions by the appellant, the demands of duty, fine and penalty confirmed by the adjudicating authority are legal and justified and sustainable or not. The appellants claimed that they are an SSI Unit exporting the readymade branded garments, hence they are not required to follow the procedure for export of excisable goods as specified in Notification No. 42/2002-CE (NT) dated 26.6.2001 under Rule 18 and 19(2) of the Central Excise Rules 2002 in light of Board Circular No. 947/08/2011 dated 21.6.2011 and Circular No. 705/21/2003-CX dated 08.04.2003, extending the simplified procedure in respect of exports of readymade garments. The adjudicating authority denied the benefit of Simplified Export Procedures on the ground that the appellants are not entitled to SSI...
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