9911796707
TMI Blog1995 (5) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... nst Bill of Entry No. 2024, dated 7-4-1992 from Netherland and claimed clearance of the goods free of duty in terms of Notification No. 13/81-Cus., dated 9-2-1981. On examination of the goods the Customs authorities formed an opinion that the imported `Image Intensifier Tubes were finished products not covered by any item mentioned in the table annexed to the Notification No. 13/81-Cus., dated 9-2-1981. The appellants were, therefore, served with a show cause notice dated 27-5-1992 requiring them to show cause as to why the benefit of Notification No. 13/81-Cus., dated 9-2-1981 as claimed by them should not be denied and why the goods should not be confiscated under Section 111(d) of the Customs Act and penal action not be taken under Section 112 of the Customs Act, 1962. After going through the submissions made by the appellants the Collector passed an order dated 27-6-1992 in which he held that the goods being finished `Image Intensifier Tubes not requiring any further manufacture. He held that they were not eligible for exemption under Notification No. 13/81-Cus., dated 9-2-1981. He therefore, ordered the confiscation of the goods under Section 111(m) of the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Undertakings must be in a form of notification issued under sub-section (1) of Section 25 of the Customs Act, 1962. The learned counsel for the appellants argued that the Collector had erred in arriving at his finding since in terms of Condition No. 7 the exemption under the notification also applies to goods which are used for manufacture of articles by a 100% EOU Undertaking and which are allowed to be sold in India in accordance with relevant Import Export Policy as amended from time to time or subject to other limitations and conditions as may be specified in his behalf by the Chief Controller of Imports Exports. He referred to the letter of intent dated 4th December, 1992 issued by the Ministry of Industry at page 21 of the paper book and the amendment thereto dated 30th June, 1992 at page 19 of the paper book in terms of which the appellants were required to export the entire (100 %) production and which also stipulated that the unit would also be entitled to deemed export benefit as would be admissible to export oriented units as per Impex Policy 1992-97. He, thereafter, referred to para 103(a) of the Import Export Policy 1992-97 which provides that the supply effected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be undertaken by the appellants. He contended that under these circumstances the Collector s finding that the appellants were not eligible for exemption under Notification No. 13/81-Cus., dated 9-2-1981 was erroneous and not sustainable. As regards the appellants claim that the imported goods could also be deemed as eligible for exemption under Notification No. 206/76-Cus., dated 2-8-1976, the learned counsel conceded that the benefit under the said notification would not be available in respect of the imported goods since the goods were unfinished items required for the manufacture of goods in the appellants factory and not capable of being supplied directly to the defence organisation. 4. On behalf of the respondents Shri K.K. Jha, learned SDR reiterated the finding of the Collector in the impugned order. 5. We have examined the record of the case and considered the submissions made on behalf of both sides. It is seen that the main question that arises for consideration in this case is whether the goods imported by the appellants are eligible for exemption in terms of Notification No. 13/81-Cus., dated 9-2-1981. 6. It is seen that the only allegation in the show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy dated 12th April, 1994 as amended from time to time in such quantity and subject to such other limitations and conditions as may be specified in this behalf by the C.C.I. E. on payment of central excise duty or customs duty, as the case may be as specified in the said condition. He has referred to the Government of India, Ministry of Industry letter dated 30th June, 1992 at page 19 of the paper book wherein the letter of intent dated 22-1-1990 granted to the appellants was amended vide letter dated 25-3-1990 providing for the manufacture of Image Intensifier Tube and Power Supply Tube under 100% EOU scheme [which] was amended to provide that the appellants would either export 100% of the production or alternatively they could avail of deemed export benefit as admissible to 100% E.O.U. as per Impex Policy, 1992-97. The appellants have, therefore, contended that the Collector had erred in holding that in respect of the imported goods the conditions of exemption as laid down in Notification No. 13/81-Cus. were not satisfied since he has failed to take into account the fact that in terms of condition No. (7) of the said notification and the letter of intent issued to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment departments by the units set up in the Free Trade Zones would be treated as a G.C.A. export. 9. While arguing that in respect of the imported goods all the conditions of Notification No. 13/81-Cus., dated 9-2-1981 are satisfied and the goods are eligible for clearance free of duty in terms of the said notification, the appellants have contended that in any case, fulfilment of export obligation being a post-importation condition its fulfilment has to be examined and ensured by the concerned authority after clearance of the goods and completion of the manufacture thereof by the 100% E.O.U. in terms of bond which is required to be executed by the importer in terms of condition No. (6) of the said notification. 10. On a plain reading of the Notification No. 13/81-Cus. (as amended) we are of the view that as long as the goods imported by a 100% Export Oriented Undertaking approved by the Board of Approval for 100% Export Oriented Undertakings appointed by the Govt. of India are specified in the table annexed to the said notification and all other conditions of the notification including condition No. (6) relating to execution of a bond for fulfilment of export obligation in te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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