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2022 (5) TMI 1316 - AT - Customs100% EOU - letter of permission mentioned the finished goods for exports as Capsules/Tablets of Pharmaceutical Formulations - SCN were for issued demanding Customs/ Excise duty on raw materials procured claiming exemption as above and used for finished products, which were not listed in their Letter of Permission - HELD THAT:- It was never the case of the revenue that the raw materials as imported were not used for the manufacture of the finished goods finally exported as required for fulfillment of export obligations of the EOU. Appellants have in their reply before the adjudicating authority taken the stand that all the injections and suspensions were exported after May, 2006 - the issue of achieving the NFE as per the LOP over the period of entire five years (including annual achievement) from the date of start of commercial production is the question to be examined by the DGFT who has issued the LOP. It is not for the Custom/ Central Excise Authorities to interfere in the manner. It is not even the case for the revenue that any investigations were undertaken by the DGFT in this regards. The entire case of revenue is based on the fact that appellant had manufactured these finished products which were not as per LOP, using the raw material imported duty free. We do not find any merits in these arguments as the appellants have consumed the duty free raw material for achieving the export obligations on yearly basis and on whole as per the LOP issued to them and amended from time to time. No evidence has been produced by the revenue that the terms of LOP have been violated in terms of quantity or value as specified in the said LOP. IN absence of any such allegation or finding by the relevant authorities the violations if any cannot be termed to be anything more than technical violations as pleaded by the respondents and held by Commissioner (Appeals). The amount of duty involved is less than Rs.50,00,000/- and the same could have been dismissed as withdrawn in terms of litigation policy Circular No. F. No. 390/Misc/116/2017-JC dated 22.08.2019. The appeals filed by the revenue are dismissed.
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