9911796707
TMI Blog2013 (12) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... 81 dated 22-6-2009 and 974565 dated 6-7-2009. 3. Briefly stated facts of the case are that the respondent filed two Bills of Entry No. 953181 dated 22-6-2009 and 974565 dated 6-7-2009 for clearance of 100% Cotton yarn dyed woven fabrics width 150 cm having assessable value of Rs. 77,41,508/- and Rs. 99,91,931/- respectively. Both the Bills of Entry were forwarded for first check examination and samples were drawn and sent for the testing to Textile Committee. The Textile Committee in their test report No. TC/LM/SE/1963/2009-10 dated 6-7-2009 and TC/LM/SE/2380/2009-10, TC/LM/SE/2381/2009-10, TC/LM/SE/2382/2009-10, TC/LM/SE/2383/2009-10 and TC/LM/SE/2384/2009-10 all dated 25-7-2009 confirmed the composition and GSM of the fabrics as 100 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce that the imported goods are used for the purpose other than the goods exported. The contention is that the imported goods are higher quality than the goods exported, which is evident from the higher value of the imported items. In this regards, he has drawn our attention to proviso (i) of the condition of Notification No. 40/2006-Cus. dated 1-5-2006 on Duty Free Import authorization. 5. The contention of the learned Counsel for the respondents is that a similar case has been decided by the Tribunal in the case of Global Exim v. Commissioner of Customs (Export), Mumbai - 2010 (253) E.L.T. 417 (Tri.- Mum.), wherein the department's case was that the value of materials exported was lesser than the value of bearings sought to be import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... echnical characteristic and specifications of materials used in the shipping bill;" 7. From the above it follows that materials permitted in the said authorization or a duty free import authorization for intermediate supply, as the case may be, shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant product i.e. the goods imported should have nexus with the goods exported. Undisputedly, the imported goods are 100% cotton fabrics and there is no condition mentioned in the DFIA and DFRC regarding the use. Similarly, there is no such condition regarding the value of each item being imported, though upper value limits for the goods the assessee is entitled to import. The condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs. 6. This paragraph gives an impression that the exporter is required to give the technical characteristics, quality and specifications in respect of the items listed below the paragraph whereas according to the notification, these are resultant products which are exported. Obviously, there appears to be a contradiction between the notification and the paragraph. Nevertheless, in such a situation what is required to be taken into account is the provisions in the exemption notification issued under Customs Act, 1962 and the Notification No. 40/2006 is very clear. Because the notification clearly says that in respect of resultant products specified in paragraph 4.55.3, the imported materials should be of the same quality, technic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laration while making exports in the shipping bill lies on both customs as well as DGFT authorities and having missed the bus at the time of export, it may not be correct to insist on specifications from a transferee of DFIA. Further, we also take note of the fact that DGFT is supposed to ensure that all the requirements have been fulfilled before allowing transferability. On these grounds also we find that the department has not been able to make out a case. Further, as regards CIF value of bearings and the submissions made by DR, we find considerable force in the arguments advanced by the learned advocate and also find that his reliance on the decision of the Madras High Court in Tamilnadu Dadha Pharmaceuticals Ltd., Harison Chemicals app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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