D.K. Jain, J. - (1.) Challenge in this batch of appeals filed by the revenue under Section 35(L)(b) of the Central Excise Act, 1944 (for short "the Act") is to the orders passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zone (for short "the Tribunal"), inter alia, holding that the duty of Central Excise on shrimps and shrimp seeds produced and removed by the respondent (hereinafter referred to as "the assessee"), a 100% Export Oriented Unit (for short "EOU"), in the Domestic Tariff Area (for short "DTA") without the approval of the Development Commissioner, would be payable under Section 3(1) of the Act and not under the proviso appended thereto.
(2.) Since the question of law arising for our consideration in all the appeals is the same, they are disposed of by this common judgment. In order to comprehend the controversy in these appeals, a brief reference to the facts in Civil Appeal Nos. 4608-4609 of 2005, which was treated as the lead case, would suffice: The assessee company is engaged in the production of shrimps and tiger prawns, falling under Chapter Sub Heading No. 0301.00 of the Schedule to the Central Excise Tariff Act, 1985 (for short "the Tariff Act"). They imported some capital goods, viz. sand blowers and air filters, duty free under Customs Notification Nos. 188/93 dated 27th December 1993 and 196/94 dated 8th December 1994 for use in their integrated Aquaculture project. The imports were subject to the condition that the said goods would be used in the production of aquaculture products and 100% or such other percentage of the said products, as may be fixed by the Board of Approvals for 100% EOU, shall be exported out of India for a period of ten years or such extended period as may be specified by the said Board.
(3.) As per the Exim Policy (1st April 1992 to 31st March 1997), an EOU Aqua culture unit was permitted to sell upto 50% of its production in value terms in DTA, in accordance with the DTA sales guidelines notified in that behalf and subject to minimum value addition.;