Per P.G. Chacko:

The appellants are a 100% export-oriented undertaking [EOU] approved by the competent authority in the Ministry of Industry, Government of India, in the year 1992, for the manufacture and export of Instant Tea Powder and Aqueous Tea Aroma. The EOU scheme which had obligated them to export the entire production of the said goods for a period of ten years from the date of commencement of commercial production, permitted them to make duty-tree imports and/ or indigenous procurement of capital goods, raw materials etc., required for the manufacture of the goods. The exemption from payment of Customs duty on imported items and that from payment of Central Excise duty on the items indigenously procured were provided under separate notifications issued by the Central Government under the respective provisions of the Customs Act and the Central Excise Act. The relevant Central Excise notification providing for exemption in respect of capital goods, raw materials etc., procured indigenously by an EOU, for the period (1.1.2000 to 21.5.2000) relevant to the instant case, is Notification No. 1/95-CE dated 4.1.95 as amended from time to time. The notification exempted the e