9911796707
TMI Blog1999 (9) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/81. Sl.No. 3 of the Notification was availed for the Compact Discs. Sl. No. 9 of the Notification was availed for the Compact Disc box and tray. The inlay cards were purchased locally. 1.3 The Compact Discs imported after recording of music were subjected to detailed processes of tests like listening test, track jumping test, surface scratch test etc. for ascertaining the quality of recording, extent of scratch etc. The Compact Discs were then packed in the jewel box and exported. 1.4 The value addition at the stage of export of the Compact Discs was quite substantial which resulted in gain of foreign exchange. 2. The respondents had applied for grant of licence to manufacture recorded audio compact discs in their 100% EOU, vide their application dated 15-9-1989 wherein the respondents explained the processes that would be undertaken in the EOU. 2.1 At this stage, it is appropriate to set out the process of manufacture given by the respondents in their application for 100% EOU for grant of licence, which is reproduced below :- We propose to import professional Audio Magnetic Tape in reels for making Analogue Master from the normal Master. Analogue Master will be sent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kaging materials required for manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods. We may state that Rule 12 relates to export of goods under rebate of Central Excise duty. It has also been pointed out in the impugned order that the entire activity of manufacture was disclosed by the respondents in their application to the concerned Ministry of Commerce for getting the licence. He has also recorded the finding that the Board of Approval granting licence consisted, inter alia, of a Member of the Central Board of Excise and Customs. He has, therefore, held that the activity undertaken by the respondents has been considered by the licence granting authority as an activity of manufacture in terms of said Notification 13/81. Therefore, it will not be correct to deny the benefit of the said Notification on this specious ground that no activity of manufacture has taken place in the present case. 3.2 Apart from that the lower appellate authority has also found that there being no suppression of facts by the respondents herein, the question of invoking longer period of 5 years for demand of duty does not ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Board of Approval believed that recorded compact discs would be imported free of charge and no foreign exchange would be spent on it. Believing that they gave the licence but this is not the true state of facts. The respondents herein have got the job work of transfer of music from Analogue Master to Compact Discs on payment of valuable foreign exchange. Therefore, there is clear violation of the import policy and against the terms of the licence and thereby the breach of Notification 13/81. He, therefore, prays for setting aside the impugned order and allowing the appeal. 6. Opposing the contentions, learned Advocate submits that the activity undertaken by the respondents herein was fully disclosed to the authorities, that is, the authority granting the licence. It was also known to the officers of Customs because they were frequently visiting the 100% EOU located at Dharuhera. All their activities were under close suprevision of the Customs Officers. They were making a declaration to the fact on the Bills of Entry by giving the warehousing bond number executed by them. They declared the goods correctly. The goods were exempted and only after examination of the goods the cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment of India, Ministry of Industries, Department of Industrial Development on 22nd September, 1984 in exercise of the powers conferred upon it by Rule : 101(2) of the Registration Licensing of Industrial Undertakings Rules, 1952. It is also seen from the composition of the Falta Export Processing Zone Board that the Board comprised of representatives of the Ministry of Commerce, Ministry of Industry, Directorate General of Technical Development, Chief Controller of Imports Exports, Industrial Development Bank of India and the Ministry of Finance, Department of Economic Affairs as well as the Member (Customs), C.B.E.C., New Delhi. It is this high power Board after a detailed and proper scrutiny of the application submitted by the appellant, approved the setting up of the said industrial unit for carrying on the industrial activity as stated in paragraph 2 of the project profile which formed a part of the said application of the appellant-firm. The above-said Board while granting such approval duly considered and accepted the requirement or necessity of the machinery/equipments listed in the said project profile as being required in the appellant s industrial unit, as is evident ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
