JUDGMENT

A. M. Khanwilkar, J.

This appeal takes exception to the Final Order No. C/203/08 dated 17.7.2008 passed by the Customs, Excise & Service Tax Appellate Tribunal¹ [For short, "CESTAT"] in Customs Appeal No. 9 of 2008, whereby the customs duty levied upon the appellant on the sale of cut flowers within the Domestic Tariff Area² [For short, "DTA"] had been confirmed by the Tribunal.

2. The factual matrix leading to the present appeal is that the appellant - M/s. L.R. Brothers Indo Flora Ltd. is a 100% Export Oriented Unit³ [For short, "EOU"] and engaged in production of cut flowers and flower buds of all kinds, suitable for bouquets and for ornamental purposes. The 100% EOU is required to export all articles produced by it. As a consequence whereof, it is exempted from payment of customs duty on the imported inputs used during production of the exported articles, vide Notification No. 126/94-Cus dated 3.6.1994⁴[For short, "the exemption notification"]. Under the said notification, exemption on levy of customs duty had been extended even to the inputs used in production of articles sold in domestic market, in accordance with the Export-Import (EXIM) Policy and subject to other con