9911796707
TMI Blog2007 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... eals). Hence the present appeal. 3. It is seen that the original authority rejected the appellant's claim on the ground that the machine imported, according to appellant's own admission, has no nexus to the service rendered by it. We may read the relevant portion: "It was communicated to the department vide party's letter dated 4-2-2005 that Duty Free Service Entitlement Credit Certificate was issued to the company for providing Services for maintenance and repair of the machine supplied to the Reserve Bank of India under a Contract for which the company received consideration in foreign exchange. In consequence to a Specific query, the importers informed the department that there is no nexus between the goods imported and the services re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of the Policy Circular No. 29(RE 2003)702 dated 9-3-2004 ('the circular') (Annexure - 2) issued by DGFT. The company wishes to highlight that the Machine has been imported in accordance with the terms of the governing customs Notification No. 54/03-Cus. dated 1-4-2003 ('the notification') (Annexure - 3). As per the Notification, there is no requirement of establishing a nexus of the imported capital goods with the services rendered. Moreover, the Policy too does not provide for such a condition to be satisfied for imports under the Certificate. The intention of the Policy, as also evident in the Notification, was not to provide such a restrictive interpretation to the applicable scheme and the benefit thereunder was required to be exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities were not entitled to press the ground of nexus against it. The contention is that in the absence of such a stipulation in the exemption notification as well as (Duty Free Credit Entitlement Certificate) the authorities cannot, through a clarification impose restrictions on the utilization of the certificate. Ld. Counsel has pointed out that this position remains settled by the judgment of the Hon'ble High Court of Bombay in the case of Narendra Udeshi v. UOI reported in 2003 (156) E.L.T. 819. We find merit in this contention also. The legally valid provisions on the subject are the exemption notification, Duty Free Credit Entitlement Certificate. The certificate mentioned the items eligible for import as "goods not covered by negati ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
