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2019 (5) TMI 1030

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..... that the procedure as laid down in 1996 Rules is followed by the appellant. The said Rules are detailed Rules requiring importer to follow a detailed elaborate prescribed procedure. As already noticed, the said Rules provided concessional rate of duty subject to the conditions that the importer would use the goods in his own factory for further manufacture of the final product - Admittedly in the present case the imported Bulk Drugs has not been utilized by the appellant in his own factory for further manufacture of Polio Drop. Instead the Bulk Drugs stands sold by them to another private party who have though used the same for intended purposes for manufacture of Polio Drops only and further supplied them to the Ministry of Health. Time L .....

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..... rganization which is being imported by them. In anticipation of Government s order for polio vaccines the appellant imported huge quantity of bulk polio vaccines under exemption in terms of Notification No.21 of 2002-Cus dated 01.03.2002. Serial No.83 of the said Notification grants full exemption from payment of duty to the bulk drugs used in the manufacture of life saving drugs or medicines, subject to the fulfillment of conditions annexed there to. In terms of conditions No.5 of the Notification, the importer is required to follow the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. The said rules prescribe an elaborated procedure to be followed by the importe .....

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..... as they have not fulfilled the conditions of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. Accordingly, proceedings were initiated against them by way of issuance of show cause notice dated 27 March, 2015 proposing to confirm the demand of duty of Customs to the extent of around ₹ 99 Lakhs. The said show cause notice culminated into the impugned order passed by the Commissioner confirming the demand along with confirmation of interest and imposition of penalty of identical amount under Section 112(a) of the Customs Act. In addition he confiscated the said bulk drugs which had been sold by the appellant and were not available for physical confiscation. Accordingly, he put re .....

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..... However, we find that the proceedings against the appellant stand initiated by way of issuance of a show cause notice dated 27 March, 2015. As already observed, the imports took place during the period April to October, 2007 and the sale of the imported goods was during the financial year 2007-08. In terms of the Rules in question the importer is required to maintain the detailed records of the use of the imported goods, which appellant had been undisputedly maintaining. The said Rules requires the assessee s Jurisdictional Central Excise officers to produce the said account before him as and when required. Rule 8 enjoins an obligation on the Assistant Commissioner or Deputy Commissioner to ensure that the goods imported are used by the man .....

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