TMI Blog2006 (5) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... icy 1997-2002. The DEEC Licence casts an export obligation on the part of the appellants. The licensing authority has permitted the appellant to import quantities to the extent of 2% in excess of their actual requirements in respect of 13 of 16 types of components towards wastage etc. during the process of manufacture of pagers. The appellants actually fulfilled all their export obligations. However, they were not able to utilize some of the components imported under the DEEC Scheme. They had closed down their Messaging Products Division well before April, 2001. Due to the closure, some of the imported components were rendered obsolete and, therefore, they were written off in the appellant s books during the financial year ending 31-03-2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficates issued by ANZ Grindlays Bank Limited were produced. (iii) The fact that export obligation has been fulfilled is not disputed by the Revenue. (iv) The appellants have also produced the DEEC Books duly logged in. (v) The exempted material imported duty free had not been disposed of in any manner except for utilization of the manufacture of Pagers. However, the excess material which could not be used were written off and they are available in the premises of the appellants. It is not the case of the revenue that the appellants have sold or diverted the components. (vi) Since the appellants under the EXIM Policy were allowed to import quantities to the extent of 2% in excess of their actual requirements, some of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the full Customs duty. He relied on the decision of the High Court of Karnataka in the case of Pooja Exporters v. Assistant Director, DRI - 1989 (41) E.L.T. 21 (Kar.) wherein it was held that mere issue of Certificate regarding compliance with the export obligation will not enable the petitioner to freely deal with the goods imported under DEEC Scheme unless the said goods had been utilized in the manner provided in the Notification No. 44/87-Cus dated 19-2-1987. 6. We have gone through the records of the case carefully. In this case, components required for Pagers were imported duty free under DEEC Licences. We are mainly concerned with the following conditions of the relevant Notification. Exempt materials shall not be disposed of or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been violated. The Authorities must be aware of the fact that in the Electronic and Communication Industry, there is rapid advancement and obsolescence is very fast. A component in few months time may be rendered obsolete. It will have no further use at all. In such a changing scenario of technology, there are compulsions to write off certain components, which have been imported. Viewed in this angle, we cannot say that there is some deliberate violation of the condition of the Notification. In circumstances like these, when the export obligation is completely fulfilled, the appellants should be deemed to have been fulfilled the conditions of the Notification. The case would be different if the appellants had not fulfilled the export ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
