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TMI Blog2018 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... mited to the extent it is appearing in the relevant licence. In the subject case the licence does not qualify the base paper with any particular colour. Hence the contention in the SCN that the noticee should have imported a particular colour of base paper only, does not appear to be legally sustainable. Demand set aside - appeal allowed. - Appeal No. C/1087/09 - A/85234/2018 - Dated:- 2-2-2018 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Paritosh Gupta, Advocate for Appellant Shri M.K. Mall, Assistant Commissioner (A.R.) for Respondent ORDER Per: Raju: This appeal has been filed by M/s Alfa Ica (India) Ltd. against demand of Customs duty on the imports made under DEEC licence. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that earlier in similar matter vide Order-in-Original dated 23.06.2004, the demand was dropped. He thus pointed out that in the instant case the show-cause notice was issued invoking extended period of limitation just one day prior to date of issue of the Order-in-Original in identical matter dropping the demand. He argued that the Revenue also believed at the material time that the goods had been rightly imported, as identical matter was dropped by Order-in-Original dated 23.06.2004. 3.1 Learned Counsel also relied on CBEC clarification issued by Circular No. 36/97-Cus. dated 16.09.1997. In the said clarification it has been stated that These instruction clearly spell out that correct interpretation of the words raw-materials requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar term will always be susceptible to various interpretations and leaves a wide discretion in the hands of the officers to pick and choose some of the characteristics and consider them as the main technical characteristic and leave others considering them insignificant. Hence insistence on very close nexus may open a pandora's box where there will be no end to the parameters for deciding the technical characteristics. This may also not be practically feasible to implement especially where the export has already taken place. Due to various reasons like non availability of base paper of same colour /design in the international market, no demand of such colour design laminates for future supply etc., the importer may not be in a position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. It is further clarified that the field formations should not establish a close nexus with reference to the quality and specification of inputs. It will be necessary to establish a nexus between an input and the export product keeping in view the commercial use of the inputs imported and the normal manufacturing process for the product exported. In Public Notice No. 59/95 dated 6.4.95 also, the word required was explained to mean that the goods imported may not be physically incorporated in export product. However, under the duty exemption scheme only those goods which could find the use/application in the resultant product would be eligible for duty free benefits under the duty exemption schemes. In other words, the goods should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the inputs in the licence. What is necessary therefore is to establish the link between the two keeping in view the commercial use of the inputs imported and the normal manufacturing process for the product exported. In the case of Commissioner Customs Chennai V/s M/s Salem Stainless Steel 2001 (131 )ELT30 (Madras), the Hon'ble High Court held that when the import licence mentioned only chemical composition of stainless steel and goods imported by petitioners being of same chemical composition, further nexus on the basis of thickness or gauge need not to be established . From these judgments it is evident that the requirement of nexus is limited to the extent it is appearing in the relevant licence. In the subject ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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