TMI Blog2007 (12) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... r the due performance of the export obligation under licence bearing Nos.34358, 401670, 401265, 402523 and 403095 respectively dated 23.12.1993, 30.6.1994, 28.4.1994, 7.9.1994 and 26.10.1994 respectively, is put in issue in these appeals 2. The facts of the case go as follows: The respondent Company was manufacturing and exporting drugs by importing certain drugs meant for manufacturing the finished formulation for export purpose. During the year 1992, the Government of India announced its export and import policy. Under Chapter XVII of the Export and Import Policy, for the period from 1992 to 1997, duty exemption schemes were framed and explained. Under clause 49, a scheme called "Value Based Advance Licence Scheme" has been introduced. The object of the said scheme was to provide raw materials and components to exporters duty free. Under the said licence, any inputs specified in the licence could be imported duty free for the CIF value stated in the licence. The licensee is obliged to export the manufactured drugs to the value and quantity mentioned in the licence. 3. Under the Scheme, the respondent applied for and obtained five licences for import of inputs stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raph No.49 of the Hand Book of Procedure relevant to the year, there could be flexibility within the range of products that could be imported as against an exportable product, but an exporter could not mix up the raw material that could be imported as between different exportable products. It was further contended that it was the duty of the authorities to grant individual and independent licence for each exported product. But in this case, a compendious licence has been issued for several exportable products based on the application of the respondent. The respondent had not specified the value addition for each exportable product in accordance with the standard input and output norms. Hence, the respondent is not entitled to get discharged its legal agreement. 8. On the other hand, the learned counsel for the respondent contended that the the value based advance licence has been granted by the licensing authority. As per the licence, the respondent has imported the inputs for the licence stated value and exported the resultant products for the FOB value stated in the licence and thereby fulfilled the export obligations within the period of twelve months granted for such fulf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xchange remittance against this licence will be governed by the guidelines issued by the Reserve Bank of India from time to time. (2) Denier of import and export should be same, in case the import item is Natural/Manmade fibre. (3) Export will be subject to Export Policy in force. (4) For sensitive items customs to carry out necessary checks. (5) The licensee shall deliver or cause to be delivered to this office within 30 days from the date of expiry of the export obligation period stated above documents as prescribed in para 126 of hand book 1992-97 from time to time as evidence to prove fulfillment of export obligation imposed on this licence. (A) no import of any consignment against this licence shall be allowed to be cleared by the customs authorities covered unless a Legal Undertaking/Bond backed by Bank Guarantee for a value equivalent to one and half times the customs duty saved (para 118 of Hand Book 1992-97) is executed by the licensee( and the supporting manufacturer M/s... (which ever is necessary) with this office in the form prescribed in Appendix-XXXIV of the Hand Book of import export procedure 1992-97 and endorsement of that effect is made by this office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Item No.(3) i.e., LEATHER CHEMCIALS items should not exceed 12% of the FOB value of export. (16) Interchangeability of CIF value of Item NO.1,2, and 3 are not (repeat not) allowed (17). (1) The individual CIF value of all items of imports bearing Customs duty (Basic and auxillary) from zero to 10%. (17). (2) The individual CIF value of any item of import which constitutes upto 2% by weight/quantity in an export product shall not (repeat not) be utilised for import of other items permitted in this licence. (18) The C.I.F. Value of Sensitive items shall not be utilised for any other items. (19) In terms of para 109(C) of handbook of procedures 1992-97, the exporter shall account the import of sensitive items allowed under this licence in their DEEC book Part II and get attested by customs authority. (20) This Licence is issued subject to the conditions laid under the footnote/General note given under the Sl.No. 0 of Product Group CHEMICALS ALLIED PRODUCTS of the Imports Exports Procedures 1992-1999 (Vol-II)". 14. The respondent was issued with Duty Exemption Entitlement Certificate in which also the materials imported against the lic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Customs binding himself to pay on demand an amount equal to the duty leviable but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with Provided that a bond or a legal undertaking and the declaration shall not be necessary in respect of imports made after discharge of export obligation in full, as evidenced by endorsement of Licensing Authority in the said certificate; (iii) that the said licence and the said certificate are produced before "the proper officer of customs at the time of clearance of imported goods out of customs control. Provided that no such imported materials shall be permitted clearance under this notification unless a debit entry has been made, in the said licence and the said certificate, by the proper officer of customs; (iv) that the imports and exports are undertaken from sea ports at Bombay, Calcutta, Cochin, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or through any of the airports at Ahmedabad, Bangalore, Bombay, Calcutta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad and Madras or through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting instruments (including gift sets and refills/nibs) on fulfilment of export obligation only in favour of manufacture of writing instruments. Explanations . - In this notification, - (i) "Export and Import Policy April 1992 - March 1997" means the Export and Import Policy 1 April 1992 - March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC (PN) /92-97, dated the 31st March, 1992 as amended from time to time. (ii) "Licensing Authority" means an authority competent to grant a licence under Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947). (iii) "Materials" means - (a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export product. Provided that in the case of electronic goods and all kinds of writing instruments (including gift sets and refills/nibs), all export items covered by one serial number in the Standard Input Output and Value Addition norms as contained in Handbook of Procedures, 1992-97, Volume-11, published, vide Public Notice No. 121(PN)/92-97, dated the 31st March, 1993, of the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensitive item as the input imported by the respondent is admittedly not a sensitive item. As per Clause 49, the licence was issued for importation of the inputs specified in the licence by stating the CIF value for those inputs. It is true that the CIF value for each of the inputs or items allowed to be imported has not been stated in the licence. In the absence of any such prescription as to the CIF value of each of the inputs for which licence was granted, and on the contrary, the CIF value has been given without reference to each of the inputs, the appellant cannot now impose a new condition, which is not available either in the licence or in the notification. It is further contended that licence should have been granted for each of the inputs separately by specifying the CIF value for import of the inputs. Admittedly, in this case, the licence has been granted by the licensing authority, who is very well aware of the exemption scheme. If the licensing authority was of the view that the licence has been wrongly issued, he would have immediately taken remedial measures either to cancel the licence or incorporate CIF value for each of the items allowed to be imported or granted in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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