9911796707
TMI Blog2007 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... achine in terms of a Duty Free Service Entitlement Credit Certificate issued by the DGFT. 2. The claim for Duty Free Clearance was rejected under a order dated 7-4-2005 by the Asstt. Commissioner of Customs. First appeal against that order was also rejected by the Commissioner (Appeals). Hence the present appeal. 3. It is seen that the original authority rejected the appellant's claim on the ground that the machine imported, according to appellant's own admission, has no nexus to the service rendered by it. We may read the relevant portion: "It was communicated to the department vide party's letter dated 4-2-2005 that Duty Free Service Entitlement Credit Certificate was issued to the company for providing Services for maintenance and rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Machine ('the Machine') against which it intends to use the credit allowed in the Certificate. However, a view was taken by your office that prima fade there is no nexus between the goods imported and the ser vices rendered and that the Company needs to establish such nexus in terms of the Policy Circular No. 29(RE 2003)702 dated 9-3-2004 ('the circular') (Annexure - 2) issued by DGFT. The company wishes to highlight that the Machine has been imported in accordance with the terms of the governing customs Notification No. 54/03-Cus. dated 1-4-2003 ('the notification') (Annexure - 3). As per the Notification, there is no requirement of establishing a nexus of the imported capital goods with the services rendered. Moreover, the Policy too d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e finding that there is no nexus between the imported machine and the appellant's service. We have already noted that such a finding was reached on a total misunderstanding of the appellant's communication dated 4-2-2005. 6. Ld. Counsel for the appellant has contended that the authorities were not entitled to press the ground of nexus against it. The contention is that in the absence of such a stipulation in the exemption notification as well as (Duty Free Credit Entitlement Certificate) the authorities cannot, through a clarification impose restrictions on the utilization of the certificate. Ld. Counsel has pointed out that this position remains settled by the judgment of the Hon'ble High Court of Bombay in the case of Narendra Udeshi v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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