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2015 (10) TMI 2262 - CESTAT AHMEDABAD

2015 (10) TMI 2262 - CESTAT AHMEDABAD - TMI - Import of plastic granules under exemption scheme (Target Plus Scheme) to be used for manufacturing of final products - Goods sent to Job Work Appellant contends that there is no prohibition to send goods to job worker for manufacture of final goods - Goods sent to job worker under provisions of Notification No.214/86 and were cleared on payment of Central Excise duty Revenue contends that notification prohibits goods to be transferred or sold th .....

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penalties are liable to be set aside - Confiscation of goods and redemption fine are also set aside Decided in favour of assessee. - Appeal No.C/297,300,301,303-306,308,335,340/2010 - Order No.A/11509-11518/2015 - Dated:- 15-10-2015 - Mr. P.K. Das, Member (Judicial) And Mr. P.M. Saleem, Member (Technical) For the Petitioner : Shri T. Vishwanathan, Shri Jigar Shah, Shri Manish Jain Shri R. Subramanya Advocates And Shri M.A. Patel, Consultant For Respondent: Shri Sameer Chitkara, A.R. ORDER .....

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e same to job workers under the provisions of Notification No.214/86-CE, dt.25.03.1986, for further manufacture into plastic films/sheets which were cleared on payment of duty. The Department contended that they had imported the goods free of duty under the scheme and had not utilised the goods, by themselves, but had sent the goods to job workers for manufacturing the final finished goods, which is a violation of the provisions of the notification. 2. Heard both the sides. The learned Advocate .....

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the impugned Order-in-Original is not sustainable. He also drew our attention to the Foreign Trade Policy and the written submissions filed. 3. On the other hand, the learned Authorised Representative for the Revenue strongly contested the submissions of the learned Counsel. In addition to reiterating the findings of the Adjudicating authority, he submits that the Customs notification specifically mentions that the goods imported shall not be transferred or sold. His contention is that the Appe .....

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urther draws our attention to Para 5.8 and 5.9 of the Order-in-Original, wherein the Adjudicating authority tried to establish that the transfer of the imported goods takes place at the time of sending the same to the job workers. 4. It is observed from Paras 3.7.1 and 3.7.6 of Foreign Trade Policy (2004-2009) that Target Plus Scheme is an export incentive scheme, wherein those who have achieved a quantum growth in exports, are allowed duty credit which may be used for import of any inputs, capi .....

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duty credit certificate issued during 2004-05 under Target Plus Scheme In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts goods when imported into India against a duty credit certificate issued under the Target Plus Scheme in accordance with paragraph 3.7 of the Foreign Trade Policy (hereinafter referred to as the said certificate) f .....

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ts made during the financial year 2004-05 over the exports made during the financial year 2003-04; (2) that the said certificate has been issued to a Star Export House by the licensing authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption : Provided that exemption from duty shall not be admissible if there is insufficient credit in the said certificate for debiting the duties leviable on th .....

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ns. Condition No.3 is relevant in the present case. The proviso to Condition 3 is applicable to the merchant exporter. It is not applicable to the Appellant who is a manufacturer exporter. Therefore, the Condition 3 as is relevant to the Appellant is that the imported goods shall not be transferred or sold . It is observed that the Appellants have sent the imported goods to their job workers for manufacture of the final products, and the title and the ownership of the goods remained with them du .....

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r Target Plus Scheme 2004-05) 10A: Listing of Job-Worker(s) for the purpose of conversion of permitted imports into possible resultant products, when imports are made for own use . Note: The beneficiary status holder (Manufacturer Exporter or Merchant Exporter) can utilize full value of credit scrip issued to him for his own use . Beneficiary may decide to make any possible resultant product for utilizing the imports permitted under the Scheme, when imported for own use . Job-Workers can be used .....

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ed under Target Plus Scheme as per Para 3.7.6 of the Policy (RE2004) are with Actual User Condition and non-transferable (except to listed supporting manufacturers). The said Annexure mentions about listing of job workers for conversion of permitted imports into possible resultant products, when imports are made for own use . It further states that the job workers can be used for conversion of imports permitted under the scheme into possible resultant products. Therefore, it is clear that own us .....

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