M/S.SIV INDUSTRIES LTD. vs COMMNR.OF CENTRAL EXCISE & CUSTOMS — C.A. No. 1787/1998

Case Summary: M/S. SIV INDUSTRIES LTD. v. COMMISSIONER OF CENTRAL EXCISE & CUSTOMS Decision: The Supreme Court held that central excise duty on finished goods manufactured by a 100% Export Oriented Unit (EOU) prior to debonding is payable under main Section 3(1) of the Central Excise and Salt Act, 1944, not under the proviso. The Court found that "permission to sell in India" under the proviso applies only to goods sold up to 25% of production while the unit remains operational under the EOU Scheme with explicit Development Commissioner approval—not to closing stock upon debonding. The Court reversed the Tribunal's decision and restored the Collector's order in the appellant's favor. This case analysis is maintained by casestatus.in based on publicly available court records.