2015 (3) TMI 72

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..... ailed to establish whether it has earned any foreign exchange out of the use of the imported goods exporting goods. In absence of earning of foreign exchange for the country, public interest is defeated. That questions bonafide of appellant. No doubt the notification does not contain any end use condition. Plea of appellant as to absence of end use condition in the notification does not bring a difference to law when object of the notification is to serve public interest. Exemption is granted in public interest to encourage exports so that foreign exchange is earned for this country. Therefore, any act defeating such purpose disentitles to the benefit sought to be granted by the notification. Accordingly, for all the reasons stated abov .....

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..... That has defeated the purpose of the notification above. 3.2 The notification above appended a Table thereto which contains Sl. No. 83 dealing with the goods imported. According to that serial number, the goods covered by Chapter 39 and 48 or any other Chapter described as tags, labels, printed bags, stickers, belts, buttons or hangers imported by bonafide exporter is exempt. 3.3 According to Revenue, appellant abused the benefit of the notification which was corroborated from its intention to evade as revealed from the statement recorded from the officers of the appellant. When there was no export by the appellant making use of the imported goods, sale of such domestically may not be ruled out. Further, mere registration of appellan .....

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..... t. 5.2 Shri Srikanth, Purchase Executive, Shri M. Suresh, Manager (Finance), Shri R. Sudhir Kumar, General Manager (Projects Materials) admitted in their statements that majority of the jeans manufactured by appellant using the labels imported were sold in domestic market. That handicapped the appellant for consideration of the benefit of the notification. When the appellant frustrated the object of the notification without earning foreign exchange for this country it cannot be said that the imports were bonafide. 5.3 No doubt the notification does not contain any end use condition. Plea of appellant as to absence of end use condition in the notification does not bring a difference to law when object of the notification is to serve .....

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