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Issues:
1. Duty exemption on imported goods for manufacturing and export. 2. Utilization of raw materials in accordance with notification provisions. 3. Transfer of goods to another 100% export-oriented unit. 4. Extension of warehousing period for imported goods. 5. Applicability of Section 23(2) of the Act regarding relinquishing title to goods. Analysis: Issue 1: Duty exemption on imported goods for manufacturing and export The case involves Hindustan Lever Ltd. setting up a factory in the Kandla Free Trade Zone for manufacturing and exporting cosmetic and electronic goods, claiming exemption from duty under Notification 77/80. The dispute arose when a notice was issued proposing duty demand on raw materials not utilized as per notification provisions. The Commissioner confirmed the duty demand, leading to the appeal. The appellant argued that certain raw materials could not be utilized due to various reasons, including being contaminated or unfit. However, the Tribunal held that failure to utilize the goods for export purposes justifies the duty demand as per the notification conditions. Issue 2: Utilization of raw materials in accordance with notification provisions The appellant contended that certain raw materials could not be utilized for manufacturing final products due to reasons like contamination or being unfit. However, the Tribunal found that the appellant failed to provide satisfactory reasons for not utilizing the goods for export or paying duty on the inputs. The duty exemption was subject to the condition that manufactured goods be exported, which was not complied with, justifying the duty demand. Issue 3: Transfer of goods to another 100% export-oriented unit Regarding the transfer of electrical goods to another 100% export-oriented unit, the appellant failed to obtain permission from the Development Commissioner, as required. The Tribunal noted that the notification did not confer the right to transfer goods between warehouses and that the request for extension of the warehousing period was made after a significant delay without a satisfactory explanation. The failure to comply with the conditions led to the dismissal of the appeal. Issue 4: Extension of warehousing period for imported goods The Tribunal emphasized that the appellant's delay in seeking an extension of the warehousing period, without a valid reason, was not justified. The inability to utilize the imported goods for export purposes within the specified period led to the demand for duty as per the notification conditions. Issue 5: Applicability of Section 23(2) of the Act regarding relinquishing title to goods The appellant argued the applicability of Section 23(2) of the Act permitting importers to relinquish title to goods. However, the Tribunal found this argument irrelevant as the appellant had not relinquished title to the goods and failed to confirm that the goods remained in a bonded warehouse. The dismissal of the appeal was based on the failure to comply with the notification conditions and utilize the goods for export purposes.
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