9911796707
TMI Blog1993 (4) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification Nos. 117/78 and 44/87 permitting an importer of raw materials under DEEC to take into account the exports effected by any other party towards fulfillment of his export obligation. He, accordingly confirmed the demand of duty of Rs. 2,00,943.08 and interest thereon @ 12% per annum from the date of clearance of the imported goods to the date of actual payment. Being aggrieved by the order passed by the Assistant Collector the appellants preferred an appeal before the Collector (Appeals) contending that Idochlorohydroxy-quinoline manufactured by them out of Iodine and Hdroxyquinoline imported under the DEEC Scheme was exported after conversion into tablets by M/s. Dey's Chemicals who had also signed the relevant bond along with them. They stated that since the order from Sri Lanka was cancelled the entire resultant product could not be exported. They contended that the duty chargeable from them for non-fulfillment of export obligation should have been determined by taking into account the actual quantity of raw materials imported by them and after adjustment of the quantity of finished products exported by M/s. Dey's Chemicals on their behalf against the required export o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to Dey's Medical for manufacture of the tablets. The CEGAT had failed to take into consideration that the Petitioners had a good prima facie case. The CEGAT orders also suffer from another infirmity. In the order rejecting pre-deposit the petitioners were given time to pay the entire amount of duty with interest within eight weeks from the date of passing of the order which was 17-3-1992; but long before that period had arrived, on 9-4-1992 the CEGAT took up the appeal and dismissed it on the ground of failure to deposit the amount of duty. In my opinion, both the final orders of CEGAT passed on 9-4-1992 and the order passed on the application for pre-deposit on 16-3-1992 suffer from non-application of mind. Both the orders are set aside. The CEGAT is directed to hear out of the appeal preferred by the petitioners without any pre-deposit of the disputed amount of tax. The appeal must be heard out within a period of three months from date. I make it clear that I have not gone into the merits of the case. All points are left open to be decided by the CEGAT. Both the parties will mention the matter before the CEGAT for fixation of a date of hearing." On an application by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licence. She added that in terms of the conditions of the licence in the event of the failure on the part of the firm to fulfil the export obligation the customs duty on the imported raw material could be recovered by the customs authorities. She added that the appeal merited rejection since the appellants had neither exported the required quantity of resultant products themselves, nor had they succeeded in getting the DEEC book suitably endorsed by the competent authority towards the fulfilment of export obligation on the basis of the third party exports. 6. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen that the advance licence No. 2967584 dated 17th June, 1983 issued to the appellants for the import of 950 kgs. of Iodine and 1000 kgs. of Hydroxyquinoline of CIF value of Rs. 2,23,000/- was issued subject to certain conditions. One of the conditions subject to which the advance licence No. 2967584 dated 17-6-1983 for the import of 950 kgs. of Iodine and 1000 kgs. of 8-Hydroxyquinoline was issued to the appellants was that they would export 72,00,000 Nos. of Choquinol Tablets for an FOB value of Rs. 3,66,200/- to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed REP licences of the specified value were also surrendered. In this regard the appellants have referred to the copies of the correspondence exchanged with the licensing authority and particularly the letter dated 13-9-1988 at page 109 of the paper book, wherein they were asked to submit the DEEC book for the endorsement of the exports effected by M/s. Dey's Medical towards the fulfillment of the export obligation as third party exports. The appellants have contended that they were unable to get the DEEC book endorsed by the issuing authority since in spite of their repeated requests the customs authorities did not release the DEEC book which was lying with them. On these grounds they have contended that the impugned order which has been passed without giving them adequate opportunity to get the DEEC book suitably endorsed by the licensing authorities was unreasonable and not sustainable. They have accordingly prayed that the impugned order may be set aside and the matter may be remanded to the appropriate authority with the directions that the appellants may be given suitable opportunity to get the relevant DEEC Book endorsed from the licensing authorities who had expressed their ..... X X X X Extracts X X X X X X X X Extracts X X X X
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