TMI Blog2004 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... Question No. 1 : Can (Standard and Additional) duty free clearance of the items detailed against Serial Nos. 140, 167, 167A and 168 of the table read with condition Nos. 21 and 21A in the Annexure to the Main Exemption Notification No. 21, dated 1st March, 2002 as amended by Notification No. 26, dated 1st March, 2003 issued by Department of Revenue, Ministry of Finance, Government of India, in exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962) be allowed by the Customs from a Custom Bonded Private/Public Warehouse to bona fide and other eligible exporters, who are otherwise allowed to import the same items duty free (Standard and Additional Duty) as per Sl. Nos. and conditions of Main Exemption Notification of 2002 referred above? Question No. 2 : Are we (the applicant) allowed by the Customs to get the items proposed to be imported by us as detailed against Sl. Nos. 140, 167, 167A and 168 of the table read with condition Nos. 21, 21A in the Annexure to the Main Exemption Notification No. 21, dated 1st March, 2002 as amended by Notification No. 26, dated 1st March 2003, issued by Department of Revenue, Ministry of Finance, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finition of 'applicant' and 'advance ruling' which shall be in respect of matters enumerated in sub-section (2) of the Section 28H. The term "applicant" is defined in clause (c) of Section 28E thus : "(c) "applicant" means - (i) a non-resident setting up a joint venture in India in collaboration with a non-resident or a resident; or (ii) a resident setting up a joint venture in India in collaboration with a non-resident; or (iii) a wholly owned subsidiary Indian company, of which the holding company is a foreign company, who proposes to undertake any business activity in India and makes application for advance ruling under sub-section (1) of section 28H;" 6. From a perusal of definition extracted above, it is evident that the term takes in its fold three categories of persons, referred to in clauses (i) to (iii), who propose to undertake any business activities in India and make application for advance ruling under sub-section (I) of Section 28H. The first category is comprised of non-residents setting up a joint venture in India in collaboration with a non-resident or a resident; in the second fall residents setting up a joint venture in India in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaken by it under the notification referred to in the questions. It is not disputed before us that the applicant has not commenced importing the goods. As such, it is entitled to seek advance ruling. We, therefore, discharge show cause notice. 11. Now coming to the merits of the case, the questions referred to above, in short, means whether the benefit of Notification No. 21/2002, dated 1-3-2002 as amended by Notification No. 26/2003, dated 1-3-2003 would be available to a purchaser of goods sought to be imported by the applicant, at the time of ex-bond clearance from the Bonded Warehouse when such a purchaser is a bona fide exporter and is otherwise allowed to import the goods duty free. It would be apt to read the said Notification here : "Text of the main Exemption Notification Notification No. 21/2002, dated 1-3-2002. (As Amended by Notification 26, dated 1 March, 2003; Sl. Nos. 416 to 433 inserted by 28/1-3-2003) Ntfn. 21 1-3-2002 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1) of Section 3 of the Customs Tariff Act as is in excess the rate specified in the corresponding Col. 5 of the said Table. It is to be noted that the exemption is subject to any of the conditions specified in the Annexure to the Notification, (the condition number is mentioned in the corresponding entry in Col. 6 of the said Table). The goods which are sought to be imported are at Nos. 140, 167, 167A and 168. As against item 140 no condition is mentioned but the entry itself contains the phrase 'imported by bona fide exporters'. In respect of items 167 and 168 exemption under the notification would be available provided the requirements of Condition No. 21 and in respect of item 167A the requirement of Condition 21A are fulfilled. The said conditions read as follows : "21. If, - (a) the goods are imported by a manufacturer of textile garments or leather for use in the manufacture of said goods for export by that manufacturer and the said manufacturer is registered with the Apparel Export Promotion Council or Council for Leather Exports, as the case may be, - (b) the total value of goods imported shall not exceed 3 per cent of the FOB value of textile garments ..... X X X X Extracts X X X X X X X X Extracts X X X X
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