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2017 (9) TMI 135 - AT - CustomsAdvance licence scheme - appellant have exported MS angles on deemed export basis and have obtained intermediate licence for duty free import of various inputs including MS billets. They had imported MS billets duty free against these advance intermediate licence and they cleared them free of custom duty - N/N. 50/2000-Cus dated 27.04.2000, 51/2000 dated 27.04.2000 and 43/2002 dated 19.04.2002 - case of Revenue is that the appellant have not imported the goods whereas the said goods was imported by Maharashtra Steel Rolling Mills (MSRM), Mumbai and the appellant have purchased the same on high sea sale basis. The goods were further given to MSRM for job work and after manufacturing the said goods were sold to MSRM. In this fact department contended that right from import of goods to sale of finished goods it is MSRM who owns the goods, therefore the clearance of goods by the appellant under advance licence has been transferred to MSRM. Accordingly the condition of N/N. 51/2000 and 43/2002 was violated. Held that: - as per the record the material was initially imported by MSRM who subsequently sold on high sea sale basis to appellant M/s. Prakash Ispat Udyog and Sanvijay Rolling & Engg. Ltd. The appellants cleared the said imported goods on the basis of advance licence under notification 51/2000-Cus and 43/2002-Cus. The goods were directly sent from the port to MSRM for job work under a job work agreement and after processing, the goods were sold to MSRM only. Though on record it appears that the goods were cleared under advance licence by the appellant and till the processing of goods on job work basis the ownership of the goods remained with the appellants. The ownership of goods remains with the appellants from purchase of goods from high sea sales basis till the processed goods are sold. It is important to ascertain that whether the goods have been transferred or otherwise on the basis of payment transaction in every stage right from import of goods till sale of processed goods. The show-cause notice also relied upon the accounts ledger of the appellant but no verification was found to have been carried out by the adjudicating authority. The fact of payment in overall transaction of the imported goods as well as sale of processed goods is very vital. However, we have observed that the adjudicating authority has not properly examined the payment transaction issue from the records. The matter needs to be reconsidered by the adjudicating authority - appeal allowed by way of remand.
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