2006 (12) TMI 45

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..... imported by them, within the time limit prescribed by the licensing authority (DGFT). The above Notification stipulated that the raw material imported duty-free under the DEEC licences were not to be disposed of or utilized in any manner except for utilizing in discharge of export obligation or for replenishment of such materials.  Where the raw materials imported were used to replenish similar materials, the Notification stipulated that such replenished materials were not to be sold or transferred to any other person. After the subject goods were cleared duty-free as above,  the department launched investigation into the manner of use of the goods and it was found that a total quantity of 134.093 MTs  of SS Coils/Sheets had .....

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..... eneral of Foreign Trade (ADGFT, for short), Chennai. These certificates have been produced by learned Consultant. He also claims support from the following decisions of the Tribunal:- (i)      Bharath Steel Corporation v. Commissioner of Customs, Chennai [2005 (186) E.LT. 565 (Tri.-Chennai)] (ii)    Ashok Enterprises v. Commissioner of Customs, Chennai [2005 (186) E.L.T. 497 (Tri.-Chennai)] (iii)   Tamil Trading Corporation v. Commissioner of Central Excise, Tuticorin [2006 (198) E.L.T. 539 (Tri.-Chennai)] According to learned Consultant, the impugned order is not sustainable in view of fulfilment of export obligation certified by the ADGFT in relation to both the licences. Learned SDR s .....

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..... manufacture of export  product were not so utilized but diverted out of the factory. The relevant condition under the Notification reads as under :- "exempt materials shall not be disposed of or utilized in any manner except for utilization in discharge of export obligation or for replenishment of such materials and the materials so replenished shall not be sold or transferred to any other  person." The appellants have never had a case that the subject goods were used for replenishment. On the other hand, it has ever been their case that the goods were used in the manufacture of the export product. This claim of the party has been successfully disproved by the Revenue who have established that the above condition was violated b .....

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