ORDER
P.G. Chacko, Member (J)
1. The appellants are a 100% EOU engaged in the manufacture of “granite tiles”. The tiles cleared on a certain day in December, 2003 got damaged in transit from the factory to the Chennai Seaport and, consequently, the goods were taken back to the factory. The lower authorities have demanded duty of Rs. 4,62,946/- on these damaged tiles on the ground that these goods were not exported.
2. After hearing both sides and considering their submissions, we have come across Notification No. 24/2003-CE dated 31.3.03 which grants exemption from payment of duty by 100% EOU in respect of all excisable goods except those cleared to DTA. Ld. SDR reiterates the findings recorded in the impugned order and, particularly refers to the Tribunal’s decision relied on in that order. The appellants have made out a strong prima facie case on the facts of this case coupled with the above Notification. The above clearance was made in 2003-04. The goods were very much available in the factory. Hence prima facie the benefit of the Notification was available to them. Accordingly, there will be waiver of pre-deposit and stay of recovery in respect of the duly and penalty amounts.
(Dictated and pronounced in open Court)
