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2014 (12) TMI 811 - AT - CustomsAdvance Authorisation - import raw sugar under actual user condition - ton-to-ton or grain-to-grain basis - Export of sugar without release order from appropriate authority - According to Revenue such failure resulted in violation of law - plea of appellant was that it was an actual user of imported goods and the export being done on “grain-to-grain” basis, there was no violation of law - Held that:- When the advance authorisation was issued that was subject to the condition as has been quoted herein before. There was no indication therein that the authorisation was subject to the condition of “grain-to-grain” basis. But the Appellant misconceived such proposition while it was allowed to operate under actual user scheme and under “ton-to-ton” basis only. The JDGFT in terms of a Policy Circular No. 1 (RE-2010)/2009-14, dated 7-9-2010 addressed to all regional authorities informed that export of sugar on ton-to-ton basis should not be allowed without release order from Directorate of Sugar against authorisation issued from 17-2-2009 to 30th September, 2009 for import of sugar. The appellant misconceived the intent of this circular to submit that it has operated under “grain-to-grain” basis and not under “ton to ton” basis. Further the appellant misconceived that its advance authorisation being issued in 2005, there is no embargo on the appellant to export sugar without release order. No licence was given to it to operate under grain-to-grain basis as is clear from the letter of DGFT. Appellant also misconceived that signing of the bond, etc. exonerated it from operating under “ton-to-ton” basis. There was further misconception by it that the bond executed by the appellant required recovery of the duty element in terms of Notification No. 93/2004-Cus., dated 10-9-2004 in case of non-fulfilment of export obligation. It was also pleaded that the appellant operated under actual user scheme. All such pleas are irrelevant and appellant was not an innocent but deliberately violated condition of advance authorisation. It may be stated that when the appellant was categorically found to have violated the export norm as has been stated by the Directorate of Sugar in its letter dated 23rd June, 2011, the inescapable conclusion that may be drawn is that 2,496 MT of sugar exported by the appellant was without release order and in contravention of the law. - Penalty u/s 114 and 114 AA imposed on assessee - However, penalty upon General Manager is reduced - Decided against the assessee.
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