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TMI Blog2012 (8) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... onverted through a jobworker, thus prima facie it appears that sending the billets to a jobworker for conversion into angles by the manufacturer/exporters cannot be construed as transfer of billets especially when there is no bar for the manufacturer – exporter to get the raw materials imported under the advance licences get converted through a jobworker - the assessee has sold the goods after its conversion and not before its conversion. As DGFT has in the past admittedly granted advance licenses to assessee as a manufacturer exporter with the assessee as a supporting manufacturer for duty free imports under notification No.51 of 2000 dated 27th April 2000. Therefore, when according to the licensing authorities a manufacturer exporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons for short). Condition No.(vii) and (viii) of both the impugned notifications read thus : (vii) that the said license and the materials shall not be transferred or sold; (viii) that in relation to the said License issued to a Merchant Exporter, ( a) the name and address of the supporting manufacturer is specified in the said license and the bond required to be executed by the importer in terms of condition (ii) shall be executed jointly by the Merchant Exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification; and (b) exempt materials are utilized in the factory of such supporting manufacturer for discharge of export obligation and the same shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue as also the basis on which the CESTAT has ordered predeposit is that in the case of a manufacturer exporter there is no provision to send the goods to a jobworker and, therefore, the assessee, a manufacturer / exporter by sending the billets to MSRM has in fact transferred the billets in violation of condition No.(vii) of the impugned notifications. 9. Prima facie the argument of the Revenue is untenable, because, construing similar provisions contained in customs notification No.32 of 2005 dated 8th April 2005 issued under the Target Plus Scheme, the Directorate General of Foreign Trade has issued a public notice on 15th February 2008 stating therein that the beneficiary status holder whether a manufacturer exporter or merc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng manufacturer. 11. Apart from the above, on perusal of the Hand Book of Procedure from 1993 onwards, it is seen that initially it was mandatory for the advance license holder, be it a manufacturer exporter or merchant exporter to get the name of the supporting manufactures entered on the license. Later on, the requirement of endorsing the name of the supporting manufacturer has been dispensed with and by making the license subject to actual user condition till redemption of legal undertaking, the license holder was permitted to have the material processed through any other manufacturer including a jobworker. However, it was open to the license holder to get the name of the supporting manufacturer entered on the license if he chose t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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