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2009 (8) TMI 247 - CESTAT, NEW DELHIAvailability of exemption to Electrical Grade Insulation Kraft Paper (EGIKP) – EGIKP whether raw material for Electrical Grade Insulation Pre-Compressed Press Boards (EGIPB). - Duty free clearance of these goods is sought under Notification No. 43/02-Cus., as amended, against advance licence for intermediate exports dated 9-6-03 issued by EGFT – on selling price of imported EGIPB, only 15% value addition found, and in that view revenue’s plea that as manufacture from imported EGIKP was uneconomical, it was sold illicitly, rejected – no evidence procuded by revenue to support such sales - When the goods imported are covered by a valid advance licence and there is no evidence indicating that the same were not used for the intended purpose and were illicitly diverted, the benefit of duty free clearance against the advance licence value Notification No. 42/02-Cus., cannot be denied. If the Department had any doubt about the use of the imported Kraft Paper in the manufacture of EGIPB they should have referred the matter to DGFT requesting for cancellation of the licence but neither any such reference has been made nor the licence has been cancelled. It is settled law that Customs Authrities cannot be sit in judgment over the decision of DGFT to issue an advance licence and go behind the licence to deny its benefit to the importer. – appeal allowed
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