9911796707
TMI Blog2006 (5) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/- under Section 112(a)(ii) of the Customs Act, 1962 and penalties of Rs. 1 crore (Rupees one crore only) on M/s. Narmada Cement Company Ltd. (hereinafter referred to as NCCL) and Rs. 1,00,000/- each (Rupees one lakh only) on Shri K.P.Y. Kulkarni, Vice President of the importer company and Shri S.K. Shah, Manager (Materials) of M/s. Narmada Cement Company Ltd. arise out of the order of the Commissioner of Customs, Jamnagar. The demands have been confirmed by denying the benefit of DEEC Scheme and benefit of exemption in terms of Notification No. 43/2002-Cus. and 94/2004-Cus. to the importer on the ground that during the period in dispute viz April, 2002 to October, 2004, the importer had transferred/sold Rs. 4,13,145.360 MTs (Sic) of non-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the licence-holder, such a transaction will not be hit by the expression sale or transfer occurring in the notification. It has also been held that the proviso to Section 28(1) of the Customs Act, will not apply to duty demand in such circumstances since non-inclusion of the name of the supporting manufacturer is only an error or omission and cannot amount to wilful mis-statement or mis-declaration. The Tribunal has considered paras 120 and 121 of the Handbook of Procedures of 1992-97 (April, 1993 Edition) and para 120 as it read with effect from 1-4-1994. Paras 120 and 121 of the Handbook (April, 1993 Edition) read as under :- Duty free Licences Subject to Actual User Condition 120. The licence granted under this scheme shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer or jobber added to the licence, he may apply for such endorsement. Upon such endorsement made by the licensing authority, they shall both be regarded as co-licences and the obligation of the licence-holder shall become the joint and several obligation of the co-licences. Anyone of the co-licences may import the goods in his name or in the joint names. The BG/LUT shall also be furnished in their joint names . In view of the above provisions the Tribunal concluded that words sold or transferred occurring in Notification No. 43/2002-Cus. (the same notification which is under consideration in the present case) will not cover a situation where duty free imported material is Out Sourced for conversion amounting to manufacture whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licence against which no coal was given by the importer to NCCL. 4. Since prima facie the export obligation has been fulfilled, prima facie no demand can be raised even if the resultant product is sold in the domestic market in the light of the Tribunal s decision in the case of Jay Engineering Works Ltd. v. Commissioner of Customs, Chennai [2003 (162) E.L.T. 680 (Tri.-Bang.)] wherein it has been held that in the case of replenishment licences, once the export obligation has been fulfilled, there is no ban on the sale of final products made out of raw material imported duty free in the domestic market. This decision follows the earlier order of the Tribunal in Cheminor Drugs Ltd. [2003 (160) E.L.T. 649 (Tri.-Bang.)]. 5. With regard to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
