TMI Blog2014 (3) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty should be confirmed only after a definite conclusion is arrived at by the Development Commissioner. However, in case of diversion of duty-free imported materials, there is no such stipulation. It is evident from the above conditions of Notification No.204/92-Cus., dated 19.05.1992 that in failure to utilize the imported duty materials for use in export obligation, duty leviable on such materials is payable. Merely because the Unit has applied for registration with BIFR, does not grant any immunity from duty legally payable by the Company - Applicant Company is not able to make out a case for full waiver of the dues adjudged - Conditional stay granted. - APPEAL NOs.C/A/187-193/2010 - ORDER NO.SO/71325-71331/2013 - Dated:- 13-11- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,175/-. Investigation conducted revealed that the Applicant Company had disposed of the materials imported without payment of Customs Duty in the domestic market during the period, October to December, 1996. They had cleared these materials to M/s. Padmini Polymers Ltd., New Delhi. Since the duty-free imported materials were not used for making the export obligation, but were cleared to the domestic market, a show cause notice was issued to the Applicant Company along with the other co-accused, demanding Customs Duty involved on the said duty-free materials and proposing for imposition of penalties on each of the Applicants herein. Ld. Commissioner confirmed the demand and imposed the penalties on the Applicants. Being aggrieved, these Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. However, in case of diversion of duty-free imported materials, there is no such stipulation. This Tribunal in case of Eastern Silk Industries vs. CC, Bangalore, 2011(274)ELT 106(Tri.-Bang.) has held that permission from DGFT is required only for demand of duty on non-fulfillment of export obligation and not for such diversion of imported raw materials. Accordingly, the Applicant Company was required to pay duty on the imported duty-free materials which were diverted to the local markets and never used for export obligation. 6. We find that the ld. Commissioner has given a categorical finding that the impugned materials were diverted to the domestic market and not used for intended purpose. This fact was already admitted by Shri Alok Ku ..... X X X X Extracts X X X X X X X X Extracts X X X X
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