In Brief
L.R. Brothers Indo Flora Ltd, an Export-Oriented Unit, produced cut flowers (non-excisable goods) and sold them in the Domestic Tariff Area without paying customs duty, claiming exemption because the goods were not excisable. The Supreme Court held that customs duty applies to non-excisable goods sold in DTA by EOUs, as prescribed by the governing notification. The Court found no retrospective application of the amended notification and concluded the appellant willfully suppressed DTA sales after failing to seek prior Development Commissioner approval, despite importing materials and equipment. The appeal was dismissed."
The lawyer headnote and full judgment text are available to registered users.