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2001 (8) TMI 118 - SUPREME COURTWhether the show cause notice which was issued by the appellant to the respondent beyond the period of one year of the import of the items in question is covered by the provisions of Section 28(1) proviso of the Customs Act, 1962 and, therefore, within time? Held that:- In view of the decision of this Court in M.J. Exports' case (1992 (5) TMI 23 - SUPREME COURT OF INDIA) there can be no doubt that any item which was imported under OGL which fell in the category of life saving drugs or medicines or equipment clearly implied that the import was for India and not for being exported to another country & the respondent was not entitled to claim the benefit of exemption as provided by Notification No. 208 of 1981. The customs authorities were, therefore, quite clear in their mind that such life saving equipments when imported under the OGL could not be re-exported. This was the correct position in law as has been upheld by this Court. If at the time of import on 19th October, 1988, it had been known that the goods imported are not to be used in India but are to be exported, then the benefit of exemption notification would not have been granted. By not disclosing the correct fact that the goods were meant for re-export, the benefit of exemption was availed of. In our opinion, therefore, the provisions of the proviso to Section 28(1) was applicable and the show cause notice issued by the customs authorities on 6th April, 1993 was valid. Further this is not a case of mere failure or negligence on the part of the exporter, it was clearly a design on its part to import and then export. Appeal allowed.
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