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2023 (6) TMI 423 - MADRAS HIGH COURT
Advance authorisation Scheme - supply of valves - deemed exports - manufacturing activity carried out or not - the goods imported and goods exported were same or not - HELD THAT:- The argument that both the imported and sold product remain one and the same, that is, valves, is also liable to be rejected since the emergence of a commercially distinct commodity is satisfied in the present case by the requirement of inspection and testing which falls within the definition of ‘manufacture’.
The judgment of the Hon’ble Supreme Court in Shri Hariprasad Shivshanker Shukla and Another v. Shri A.D. Divelkar and Others [1956 (11) TMI 34 - SUPREME COURT] is an authority for the proposition that where a term has been defined in the statute, there is hardly any need for further scrutiny of the term and the statutory definition is itself to be scrupulously applied.
Admittedly, there is a grey area in regard to whether at all the petitioner has added any components to the imported valves. While it has been consistently representing to the authorities that it has been fitting indigenously procured actuators and gear-boxes to the valves, the authority has, in the impugned order, pointed out that there is a declaration in Form ANF 4A of the Advance Authorisation confirming that the petitioner has not procured any indigenous items for the export product - Even in the writ affidavit, the petitioner has maintained that it has been procuring indigenously procured items for the process of manufacture. One approach is to state that even without such procurement and additions to the imported valves, the processes of testing of the valves prior to final supply would suffice to satisfy the definition of manufacture under Clause 9.36 of the Exim Policy.
The Karnataka High Court in Commissioner v. Hewlett Packard India Sales (P) Ltd [2011 (4) TMI 1281 - KARNATAKA HIGH COURT] has held that the process of testing, repacking and re-labelling of imports would satisfy the definition of ‘manufacture’ under the Foreign Trade Policy.
The matter remanded to the file of Respondent 1, to be decided afresh - Petition allowed.