9911796707
TMI Blog2001 (4) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... ported raw materials for manufacture of final product and exporting the same. They have imported TDI duty free and utilized the same in the factory for manufacture of the final product, but they had sold the same in the domestic market on payment of duty. The department initiated proceedings against the appellants on the ground that they have violated the provisions of Notification No. 304/97-Cus. by diverting the same in to the domestic market after manufacturing the final product and there has been violation of the provisions of the Notification. It was pointed out to the Commissioner that Customs themselves have referred the matter to the DGFT about their manufacturing and sales in the domestic market vide their letter dated 25-2-94 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner is totally incorrect and uncalled for. He drew our attention to the above judgment of the Tribunal to show that the Tribunal had not laid down any such ratio about the implication of the Dolphin Drugs case having brought to the notice of the DGFT about diversion of the goods in the domestic market. He pointed out that in the present case in fact the department had initially written to the DGFT about this fact and the Commissioner therefore was not justified in his observation and drawing observation against the judgment of the Tribunal contrary to the law laid down and hence the order of the Commissioner is totally bad in law. He submitted that the ratio of Dolphin Drugs case (supra) is binding and the issue is covered and sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at by the Commissioner is incorrect. Therefore, by accepting the learned Counsel s submission and in the light of the Tribunal judgment, we are of the considered view that waiver of pre-deposit is required to be granted and the recovery stayed. 4. As the issue lies in a short compass, we are of the considered view that the impugned order is required to be set aside and the matter remanded to the Commissioner for de novo consideration. He should pass a fresh order without making any observation contrary to the conclusion arrived at in the Tribunal s order in the case of Dolphin Drugs (supra). If the evidence on record shows that that the Customs Department has referred the matter to the DGFT and the DGFT has granted extension of time to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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