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Issues:
1. Entitlement to benefit of advance licence when expired at the time of clearance from the warehouse. Analysis: The issue in this case revolves around whether an importer would be entitled to the benefit of an advance licence when it had expired at the time of clearance from the warehouse. The original adjudicating authority denied the benefit, stating that the licence was not valid at the time of clearance. However, the Commissioner (Appeals) overturned this decision, emphasizing that the validity of the advance licence is crucial only at the time of dispatch of the goods. The appellant had submitted the advance licence and duty exemption entitlement certificate during ex-bonding, which were imported against a valid advance licence, entitling them to duty-free import under Notification 30/95 dated 31-3-1995. The Commissioner relied on a previous decision in the case of Chloride Industries Ltd. v. Commissioner of Customs, Mumbai (1998) to support this proposition. Furthermore, upon hearing both sides, the judge found that the precedent set in the Chloride Industries Ltd. case was directly applicable to the current situation. It was established that importation under an advance licence, even if expired at the time of clearance from the bonded warehouse, could still claim the benefit of the relevant Notification. The judge highlighted that the scheme did not mandate a valid advance licence to be produced and debited at the time of warehouse clearance. Referring to a specific order in the case of EID Parry (India) Ltd. (2003), where the benefit was extended despite the licence expiring at the time of clearance, the judge concluded that there were no merits in the revenue's appeal and consequently rejected it.
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