Home Case Index All Cases Customs Customs + AT Customs - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 502 - AT - Customs100% EOU - Duty free imports under N/N. 52/2003-CUS dated-March 31, 2003 - Job-work - Department took the view that the appellant’s act of clearing chemicals imported by them under Notification No. 52/2003 did not satisfy conditions stipulated in para 4 of the Notification - HELD THAT:- The Notification No. 52/03 provides for import of various goods for use in the manufacture of goods in 100% Export Oriented Unit for the purpose of export. As per terms of this notification, the appellant imported various goods for use in the manufacture of Fire Retardant garments. Para No. 4 (3 iii) of the said Notification permits the imported goods, to be taken outside the EOU for certain permissible processes including job work. After carrying out such processing goods are required to be returned to the unit for carrying out the remaining processes to ready the goods for export. The appellant sought permission under the above paragraph of the Notification for sending out certain goods for job workers. The expression of ‘job work’ has been interpreted in liberal terms by the Tribunal and Hon’ble High Courts. In the present case, the fire retardant chemicals imported duty free has been supplied to the job workers. Such chemicals were coated on the fabrics manufactured by the job workers. But it is seen that the Fabrics are shown to have been purchased by the appellant as evidenced by the invoices issued for such fabrics. In respect of the main job worker, M/s. JCT Faguara, it is further seen that the procurement of Fabrics from JCT is also supported by issue of CT-3 certificates issued by the Jurisdictional Superintendent for the appellant. This clearly evidences the fact that fabrics have been manufactured by JCT for supply to the appellant. The activity carried out at the premises of job workers will be squarely covered within the para 4 (iii) of the Notification under which due permission has been granted by the Development Commissioner. There is no dispute that the processed fabrics on which the imported chemicals coated has been duly received in the premises of appellant - there is no justification for raising the demand for Customs duty, not paid at the time of import on the chemicals. Appeal allowed - decided in favor of appellant.
|