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TMI Blog2000 (12) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue against the order in original No. ACU/DS/13/97, dated 30-8-97 whereunder the Commissioner of Customs, New Delhi has dropped the duty demand of Rs. 7,07,01,428/- raised on M/s. M.M.T.C. Ltd. and has dropped penal action proposed against M/s. MMTC. 2. The brief facts of the case are that M/s. MMTC is a Public Sector Undertaking of the Government of India. Under the Export and Import Policy of the Government, as framed from time to time, Schemes were formulated whereby jewellery manufacturing units were permitted to import primary gold of 0.995 fineness for the purpose of manufacture and export of gold jewellery, subject to certain value addition norms. Such units were permitted to set up manufacturing facilities within the specified Export Processing Zones or in Special Export Oriented Complexes subject to these units being 100% EOUs. Para 88 of the EXIM Policy 1992-97 deals with the schemes for export of gold/silver jewellery and articles. Para 88 is divided into clauses A to G and each clause governs a different Scheme. The Broad outlines of the Scheme are as under : A. Scheme for export of gold/silver jewellery and articles against gold/silver supplied by the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to which gold was issued Duty demand 1. C/A 50/98 16-1-1997 12 kgs. M/s. Amit Jewellers Rs. 34,80,000/- 2. C/A 51/98 Nil 8 kgs. M/s. Goldex Rs. 29,61,750/- 3. C/A 52/98 16-1-1995 9.986 kgs. M/s. Zevrat Overseas Rs. 36,74,598.35 P 4. C/A 53/98 15-10-1996 read with corr. dated 26-8-1997 10 kgs. M/s. Unique Jewellers Rs. 29,00,000/- 4. The Noticees were adjudicated vide four separate Adjudication orders and the Commissioner confirmed duty demands and imposed penalties as set out in the opening paragraph of this order. Hence four appeals have been filed by M/s. MMTC Ltd. Sh Manoj Kumar has filed appeal against imposition of penalty vide adjudication order dated 4-11-1997. 5. The subject matter of Appeal No. C/478/98 filed by the Revenue is the dropping of proceedings against M/s. MMTC Ltd. in respect of import of 180 kgs. of gold bars against 22 bills of entry filed from 5-1-1991 to 23-6-1994 claiming exemption from duty under Customs Notification No. 3/88, dated 14-1-1988 and supplied to Export Oriented Units set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out of such production or packaging in the manner as may be prescribed in the Export-Import Policy and in this notification; (5) the importer shall maintain a proper account of import, consumption and utilisation of the said goods and of the exports made by him and shall submit such account periodically to the Assistant Commissioner of Customs; (6) the importer satisfies the Development Commissioner of the Zone that the goods so imported have been used for the purposes specified in the notification or for any other purposes specified in Export-Import Policy; (7) the Assistant Commissioner of Customs, may subject to such conditions and limitations as may be imposed by him and subject to the provisions of Export-Import Policy - (i) permit the said goods or goods manufactured or packaged in the unit to be transferred or supplied to another unit in the same Zone; (ii) permit re-export of dead-stock or broken stones upto 5% of the value of import of such stones; (8) gem and jewellery, including the rejects, manufactured in the said Zone, shall not be brought to any other place in India (that is to say the Domestic Tariff Area) for whatever purpose : Provided t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d findings is admissible only when such mountings and findings are manufac tured from imported gold and are exported as such; and (b) the wastage norms for gold jewellery given under the categories A, B and C of the aforesaid Table shall apply mutatis-mutandis to the export of platinum/studded jewellery and articles. (11) export under this notification shall be allowed - (i) by air freight through the airports specified in Annexure-II to this notification; and (ii) through post parcels, in accordance with such procedure as may be specified by the Commissioner of Customs; (12) gem and jewellery manufactured in the said Zone may be supplied to the retail outlets or show rooms set up in the departure lounge at international airports at Delhi and Bombay in accordance with the Import and Export Policy for sale to a tourist as defined in the Baggage Rules, 1994, leaving India in accordance with the proce dure specified by the Commissioner of Customs. Explanation. - For the purposes of this notification, Export-Import Policy means the Export and Import Policy, 1st April, 1992 - 31st March, 1997, published under the Ministry of Commerce Public Notice No. 1-ITC (PN) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and consumables thereof. 4. Raw materials. 5. Components. 6. Consumables required for manufacture of goods. 7. Packaging materials. 8. Tools, jigs, gauges, fixtures, moulds, dies and instruments and accessories and spare parts thereof. 9. Prototypes, technical and trade samples for development and diversification. 10. Drawings, blue prints and charts. 11. Goods re-imported within one year of the date of exportation for re-export after repairs or remaking. 12. Goods re-imported within one year from the date of exportation from the Zone due to the failure of the foreign buyer to take delivery. ANNEXURE-II Name of the Zone Exports through Airports at 1. Santacruz Electronics Export Processing Zone Sahar 2. Cochin Export Processing Zone Trivandrum/Calicut/Cochin 3. Noida Export Processing Zone Delhi 4. Falta Export Process Zone Calcutta 5. Madras Export Processing Zone Madras 6. Surat Export Processin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arises. The only argument that is canvassed before us is that the liability cannot be fastened upon M/s. MMTC as it is not the importer but only the supplier of imported gold to Gem and Jewellery units. We see no merit in this argument. In all the cases before us, it is M/s. MMTC that filed the bill of entry for import of gold. Therefore, M/s. MMTC cannot escape the responsibility cast upon the importers and the fact that the gold was not meant for use by M/s. MMTC itself but was supplied to various units, cannot and does not alter the legal position that M/s. MMTC is the importer of the gold in question. The Scheme under which M/s. MMTC was operating yokes M/s. MMTC with the Gem and Jewellery units and fulfillment of condition of manufacture and export of jewellery/articles by the said units is necessary in order that M/s. MMTC may avail of the benefit of duty free import of gold. Under the Scheme, dual role has been assigned to M/s. MMTC namely that of importer-cum-supplier. Further, as per the provisions of Rep. Circular No. 22/98, M/s. MMTC has responsibility/continuing obligation to monitor the activities of the exporting units and to ensure export of gold/jewellery within a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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