TMI Blog2016 (4) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... ch export DOC crossed the border in PP bags. Held that:- as regards the exports to Pakistan by train there is no evidence that the goods did not cross the border packed in PP bags and therefore if there is any demand in respect of the same, the same would not be sustainable. Regarding export of DOC by ships, the PP bags were used for manufacture/processing of the export goods as packing is certainly a process. The condition of the notification is that the goods (DOC) for the processing of which the bags were procured duty free should be exported. There is no dispute that DOC was exported and it is not the allegation that DOC was not exported. Even the evidence to that effect has been given in the form of Customs endorsed AREs. The said n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the DOC was cleared packed in these bags and delivered at the Customs port in packed condition and therefore conditions of Notification No. 43/2001-CE(NT) are satisfied. (iii) It has produced evidence that DOC cleared packed in these was duly exported and this fact is not in dispute. 4. The ld. DR, on the other hand, stated that at least in respect of DOC export by ships the PP bags were not exported and so the impugned duty became recoverable. 5. I have considered the contentions of both sides. As regards the exports to Pakistan by train there is no evidence that the goods did not cross the border packed in PP bags and therefore if there is any demand in respect of the same, the same would not be sustainable. 6. Regarding exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be procured without payment of duty; (iv) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise shall also verify the correctness of the ratio of input and output and other particulars mentioned in the declaration filed before commencement of export of such goods. He may, if necessary, call for samples of finished goods or inspect such goods in the factory of manufacture for verifying the declarations. He shall, after being satisfied about the correctness of declarations, countersign the application in the manner specified in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001; (v) The manufacturer or processor may remove the exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of Finance (Department of Revenue) notification No.40/2001-Central Excise (N.T.) dated 26th June, 2001or in notification No.42/2001-Central Excise dated 26th June, 2001 shall be followed. There is no doubt that the impugned bags were procured duty free under the said notification and were used for packing the export goods (viz. DOC) and DOC packed in these bags was cleared to the factory for export. The export goods reached the port in the same packing and it was only at the time of loading that possibly for the sake of efficient use of space, it was found useful to load DOC in bulk and therefore DOC was taken out of the bags and loaded on the ship and in the process bags were discarded. Thus the PP bags were used for manufacture/p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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