Per V.K. Agrawal :

M/s. Ginni International Ltd. have filed this appeal being aggrieved with the Adjudication Order No. 42/2000 dated 26.12.2000 passed by the Commissioner, Central Excise confirming the demand of Central Excise duty and imposing penalty in respect of sales made to Domestic Tariff Area (DTA).

2. Shri V. Lakshmi Kumaran, learned Advocate, submitted that the Appellants, a 100% Export Oriented Undertaking (100% EOU in short) manufacture Cotton Yarn and Woven fabrics which, apart from being exported, are also sold in DTA to other E.O.Us; that as per para 9.10 of the Export Import Policy, 1997-2002, these supplies to other E.O.Us in D.T.A. are treated as deemed exports and the same are counted towards fulfillment of export performance by them; that para 9.9 (b) of the Exim Policy stipulates that EOU can sell upto 50% of FOB value of export in DTA; that on an application made by them, Development Commissioner, NEPZ granted them permission to sell goods in DTA to the extent of Rs. 998.38 lakhs for the quarter April-June, 1999 and Rs. 801.69 lakhs for the quarter July-September, 1999; that accordingly the Appellants after obtaining the permission from the Jurisdictional