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TMI Blog2004 (8) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... mended and also 208/92-Cus. to their branded warehouse. PSL have a licence to operate and Manufacture under Bond vide Section 65 of the Customs Act, 1962. 2. The BES were assessed provisionally under Section 18 of the Customs Act, 1962. At the time of finalisation of the assessments on observing the following points - (i) PSL, is not the actual importer, as ONGC is the actual importer/ owner. (ii) PSL merely coating the pipes on behalf of ONGC and after coating the same return them to ONGC for use in S.B.H.T. project, i.e., PSL was merely doing job work of coating and goods were not sold to ONGC. (iii) The essentiality certificate granted by Oil Industry Development Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h evidence that they are eligible to benefit of Notification No. 208/92, having fulfilled the condition and sale of goods or ownership thereof was not relevant. Therefore demand was not sustainable. (iii) As regards mere coating resulting/not resulting in manufacture under Section 2(f) of Central Excises & Salt Act, 1944 from the process undertaken, it was found that it could be demonstrated that Bare-line-Pipes as imported are totally different from such Line Pipes emerging by a highly technical process. Therefore, manufacture did take place. (b) Revenue is in appeal, aggrieved, by these findings, on the grounds - (i) Both parties have failed to squarely estab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sealed to the Customs Tariff Act, 1975 (51 of 1975) used in the manufacture of goods in accordance with the provision of section 65 of the said Customs Act to be supplied in connection with the purpose of offshore oil exploration or off-oil exploration from -" A plain reading of the above would indicate that the exemption is to Raw Materials & components used in manufacture in accordance, with the provision of Section 65 of the Customs Act, 1962, which are thereafter to be supplied in connection with the purposes mentioned in the notification. There is no dispute about the subsequent supply for the purposes as mentioned. Manufacture in accordance with Section 65 of the Customs Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onded Warehouse of PSL, is permitted under Section 58. That ONGC & PSL have executed a bond envisaged under Manufacture and Other Operations in Warehouse Regulations 1966, presented vide its Regulation 4. There is no ground taken of violation of any of the provision of these Regulations in the appeal filed by Revenue. A reading of these regulations would not debar goods in ownership of ONGC, warehoused as deposited in the Warehouse of PSL under Section 58, to be denied the benefit of the operations under The Regulation or Section 65. The warehoused goods coated for eventual use in the permissible activities under Notification No. 208/92 cannot be denied the benefit of the notification. The benefit has been correctly allowed by the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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