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TMI Blog2010 (1) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... They applied to the jurisdictional Superintendent for granting permission to procure packing materials for the manufacture of pickles for export in terms of Notification No. 49/94-C.E. (N.T.), dated 22-3-94 mentioning the details of the supplier. The Range Superintendent issued two CT-2 certificates both dated 14-9-99 for procuring consignments of packing materials and the appellants procured the materials for packing the manufactured pickles and exported them under bond. The Superintendent issued letter dated 28-10-99 informing the appellants that the CT-2 certificates issued by him may be treated as withdrawn. Subsequently, a show cause notice dated 31-3-2000 was issued proposing demand of duty of Rs. 64,437/- holding that the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocedural mistake as the export of the goods is not in dispute, it is a Revenue neutral exercise as they were eligible for rebate of duty if paid on the inputs. 5. Ld. SDR submits that the Superintendent of Central Excise issued CT-2 certificates based on the application of the appellant. Having realised the mistake, the certificates have been rightly withdrawn by him. As the inputs have been procured without fulfilling the conditions under Notification No. 49/94-C.E. (N.T.) insofar as it relates to the status of the supplying unit and other conditions, the duty demand is in order. 6. I have carefully considered the submissions from both sides. The basis on which the CT-2 certificates were issued by the jurisdictional Superintendent to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced, the supplying unit should have paid duty and could not have availed the exemption. If the exemption Notification has been wrongly availed, it would be proper to demand from the assessee who has availed the exemption. The execution of the bond for the recipient unit is only to ensure that the material received by them is not diverted or utilized for the purpose other than the intended purpose. If the goods are received under CT-2 certificate the certificate was diverted to the market or diverted for the purpose other than the intended purpose, then the recipient unit could be proceeded against for recovery of duty involved on the goods in terms of the bond. In this case, we find that there is no mis-declaration of any nature by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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