TMI Blog2015 (11) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... all upon the assessee to wait until the date of issue of licence even for placing a purchase order upon the foreign exporter. The only restriction as could be seen from Annexure A to the licence was that the assessee should not have cleared the goods, from the Customs and should not have paid customs duty before the actual date of issue of licence. Appellant was forced to get the goods cleared from the Customs on 15.3.1995, as otherwise, they had to incur demurrage, without knowing the proposed date of issue of licence. The decision to grant licence for the import of the very same machinery at concessional rate had been taken by the Committee atleast one month before the date of clearance of the goods. The meeting in which the Committee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tic delay. It was issued on 17.5.1995. 4. In the meantime, the imported machinery arrived at Tuticorin Port and the appellant/assessee was faced with the dilemma as to whether they must have a provisional clearance of the goods or they must await the actual issue of the EPCG licence and incur the demurrage. Choosing the former one, the assessee had provisionally cleared the goods on 15.3.1995. 5. The Department claimed that the appellant was not entitled to concessional rate of duty in the light of condition No.6 contained in annexure A to the licence dated 17.5.1995 which reads as follows:- This licence shall be deemed to be valid for the goods already shipped/arrived provided the goods have not already been cleared from the Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.6 requires is that the licensee should not clear the goods and should not pay customs duty. 9. But, the above two conditions cannot be taken to be absolute. In the case on hand, the appellant was forced to get the goods cleared from the Customs on 15.3.1995, as otherwise, they had to incur demurrage, without knowing the proposed date of issue of licence. The decision to grant licence for the import of the very same machinery at concessional rate had been taken by the Committee atleast one month before the date of clearance of the goods. The meeting in which the Committee decided to issue a licence took place on 13.2.1995 and the assessee cleared the machinery from the Customs on 15.3.1995. But, the DGFT issued the licence on 17.5.1995 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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