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2021 (1) TMI 627 - HC - CustomsWriting off the imported duty-free materials from the books of accounts of the importer - Whether amounts to "disposed of" within the meaning of Customs Notification No.30/97-Cus dated 01.04.1997 under which the goods/materials are imported? - 'write off' the duty free imported material from the books of accounts without paying duty - violation of norms of 'Actual User Condition', 'export obligation' or not - utilization in discharge of export obligation or for replenishment' prescribed under Customs Notification No.30/97-Cus dated 1.4.1997 - writing of the duty free imported material without complying with the condition of 'actual user' imposed in the exemption order by the Department - clause (vii) of Notification No.30/1997-Cus dated 01.04.1997 - HELD THAT:- The tribunal on the basis of advance licences issued to the respondent and the standard input output norms has recorded a finding that the respondent was allowed to import 2% in excess to provide for the wastage. It is also pertinent to mention here that since, the respondent was allowed to import 2% in excess of their actual requirement, it is the case of the respondent that some of the components remained unutilized due to closure of messaging products division as the components were rendered obsolete. Admittedly, the respondent has fulfilled the entire export obligation and has realized the foreign exchange and has neither diverted the import material nor has sold it and has used all the imported materials. It is pertinent to mention here that the provisions of the Income Tax Act, 1961, permit the respondent to write off the unused assets. Therefore, clause (vii) of the Notification has to be read in the context of the legal provisions and cannot be read in isolation. The word 'any manner' therefore, cannot include within its ambit written off duty free imported material in the books specially when the same was in the custody of the respondent itself as writing off of the same is permissible in law. Therefore, the contention of the revenue that provision or clause (vii) of the Notification. Was violated does not deserve acceptance. Appeal dismissed - the substantial questions of law involved in this appeal are answered against the revenue and in favour of the assessee.
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