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2011 (6) TMI 647 - AT - CustomsStay – demand of Customs duty - in respect of raw material (zinc dross) imported by them under 8 advance licences and used in the manufacture of the resultant product (zinc oxide), which was diverted to the domestic market – Held that:- conditions of Notifications No. 93/2004 and 94/2004 would require the licensee under the DEEC Scheme to export the resultant product manufactured out of his imports even after discharge of export obligation. respondent admitted their liability under Section 108 of the Customs Act. They also paid an amount of Rs 1.12 crores towards duty liability arising out of breach of conditions of the aforesaid Notifications. advance licences were valid at the time of importation. original authority under the FTDR Act had cancelled the advance licences ab initio and the Additional DGFT (appellate authority) had upheld that decision. The appellate authority’s order was set aside by the Hon’ble High Court for the purpose of remand. Consequently, the original authority under the FTDR Act is required to reconsider the question whether the advance licences were liable to be cancelled. Commissioner could not have taken the final view that the advance licences were valid at the time of importation. For these reasons, the learned Commissioner’s order is prima facie unsustainable and its operation is liable to be stayed. Stay application allowed
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