Case Law Details
PCL Oil & Solvent Limited Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Ahmedabad has held that Para 4.28(f) of Handbook of Procedure, 2004-09 relating to regularization of bonafide default by exporters using Advance Authorisations, cannot be applied straight away to normal imports where export obligations have been fulfilled. The Tribunal in this regard noted that policy prescribed in Para 4.1.5 of FTP permitted the use of left-over material for manufactured goods and clear the same in domestic tariff area. The Revenue department had demanded Customs duty on the inputs imported duty free but not used in manufacture of export goods as lesser quantity was required.
FULL TEXT OF THE CESTAT JUDGEMENT
This appeal has been filed by M/s. PCL Oil & Solvent Limited against the order of Commissioner (Appeals). The Commissioner (Appeals) had set aside the order of additional Commissioner dropping of demand of Customs duty.
2. Learned Counsel for the appellant pointed out that they are manufacturing goods availing benefit of imports duty free advance authorization. He pointed out that as per duty free advance authorization the appellant are allowed to import certain quantity of goods subject to value limits, for export of finished goods. The quantity of goods importable by them is determined by Standard Input Output Norms (SION) norms. As a result, while they were permitted to import certain quantity against advance authorization duty free, they actually needed the lesser quantity to manufacture the goods required to be exported. Learned Counsel pointed out that Revenue is seeking to demand duty on account of their efficient manufacturing process. Learned Counsel pointed out that the Revenue has primarily relied on Para 4.28 (f) (v) of Handbook of Procedure, 2004-09. The said paragraph reads as under:-
Please become a Premium member. If you are already a Premium member, login here to access the full content.
