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TMI Blog1999 (6) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... body wash concentrate" and "Super soap lotion concentrate", against DEEC licence on the ground that the said goods cannot be considered as material qualified for exemption in terms of Notification No. 31/97 as there is no nexus established between the goods imported and its intended use for the purpose on the basis of which the DEEC licence was procured. 3. Vide the Order-in-Original dated 12-3-1998 the lower authority denied the benefit of exemption under Notification No. 80/95, dated 1-4-1995 in respect of Smoke/Maladour Eliminator imported under DEEC scheme on the ground that the said goods would not qualify for exemption under the said notification and that they are not capable of being used in the export product. 4. Briefly stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat could be used for cleaning purposes by the workers cannot be said to be used in the production export of goods as is the conditions of the said notification. Further as per the submissions before RALC that "soap lotion and body wash soap" are for preserving, cleaning and washing the fish items whereas in the latest submission it was stated that it would be used by workers for cleaning purposes and therefore the subject goods went beyond the scope of advance licence as warranted by para 7.3 of Exim Policy 1997-2002. The show cause notice also alleges why the said goods cannot be confiscated invoking penal proceedings. However, after discussing the submissions made before the adjudicating authority and examining the cases referred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal) = 1997 (71) ECR 530] and Commissioner of Customs, Nhava Sheva v. Alfa Exim Sandeep Impex P. Ltd. - [1997 (95) E.L.T. 366 (Tribunal) = 1997 (71) ECR 287 (Tribunal)] wherein it was held once the export obligation has been fulfilled and the transferability of the licence fallowed, the Customs cannot ask the transferee to establish nexus between the imported goods and exported goods. He has also referred to the Order No. 218/97 WZB, dated 7-10-1998 in the case of AR Enterprises v. C.C. Nhava Sheva. 6. The impugned order and the submissions made in writing and those presented during hearing have been considered by me carefully. The appellant imported (a) hand and feet sanitizer namely "Super soap body wash concentrate" and "Super soap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Authority on or after 1st April, 1997. (b) that the exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, and (c) that where the benefit of notification is sought by a person other than the licencee, such benefit shall be allowed against the said licence and the said certificate only if it bears endorsement of transferability by the Licensing Authority. However, specific exclusion has been made for transferability also in respect of import of Acetic Anhydride, Ephedrine and Pseudoephedrine. The Notification also contains an explanation which explains Materials as :- (a) raw materials, components, intermediates, consumables, computer software an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y have identified these items as eligible for import under the DEEC Scheme for maintaining the hygiene and for improving the surroundings, improving the working conditions establish the eligibility for import. The word `production or manufacture of resultant product has not been defined in the Customs Act, Exim policy or in the notification. However, we can examine the words in the light of definition of manufacturer as provided under Section 2(f) of Central Excise Act, 1944. As per the Section 2(f) manufacture includes any process incidental or ancillary to the completion of the manufactured product. Accordingly, all the materials which are required in the manufacture of resultant product and are incidental/ancillary to the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the licence and the other for the exemption. The exemption notification inter alia provides that the materials imported are covered by the licence issued under the DEEC scheme and when the said materials are covered by the licence and are acceptable for extending DEEC scheme, then such goods are also equally eligible for the benefit of the notification. Since the material imported are needed for maintaining the hygiene of the workers and surrounding conditions, which have not been denied, which are part of the production/processing of the fish/fish products and that the said imported material are used in relation to the manufacture, the denial of the benefit of notification was not in order. Further, the decision of the Tribunal refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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