Home Case Index All Cases Customs Customs + HC Customs - 2016 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 465 - BOMBAY HIGH COURTStatus holder in Star Export House - Whether the Appellate Tribunal is correct in holding that in terms of para 4.1.3 and para 4.1.5 of the Foreign Trade Policy 2004-2009 the appellants could have cleared the resultant products manufactured out of duty free inputs in the domestic market before fulfillment of the export obligation? - import of raw materials against advance licences - N/N. 43/2002-Cus dated 19th April, 2002 and 93/2004-Cus dated 10th September, 2004 - Held that: - provisions relating to advance licence under the FTP do not require that the export obligation should be completed out of imported duty free raw materials alone. In other words the licence holder is free to fulfill the export obligation out of indigenous raw materials. The goods are liable to confiscation when they are imported relying on exemption notification, but that exemption is subject to a condition. If that condition is not observed, the Hon'ble Supreme Court held that the goods are liable to confiscation. The power of the customs authorities is held to be absolute. Imposition of penalty u/s 114A - export obligation under the advance authorisation - Held that: - the assessee suppressed the actual consumption of raw-materials and undeclared consumption norms while applying for licences on ad-hoc norm basis. The allegation is of diversion of raw-materials imported duty free for the manufacture of finished goods in domestic market before fulfillment of export obligation. This is one violation or breach alleged or attributed. The tribunal, in para 39 also holds that in some cases, raw-materials imported were not utilised or physically incorporated in the production of goods exported. The declarations given for obtaining the licences were false. It is also held that export obligation in large number of licences is yet to be completely fulfilled even though the period is over long back - penalty upheld. No interest is payable on any of the customs duties that are due from the appellant. Appeal dismissed - decided partly in favor of appellant.
|