9911796707
TMI Blog2004 (4) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... had been issued to M/s. Lupin Laboratories Pvt. Ltd. In terms of advance licence, M/s. Lupin Laboratories Pvt. Ltd. were entitled to import inter-alia, HMDS for export production. Further, in terms of Notification No. 30/97-Cus., dated 1-4-97, the materials imported against advance licence "with Actual User Condition in terms of Para 7.4 of the Export-Import Policy, 1997 - 2002" were exempt from the whole of duty of customs leviable thereon which is specified under First Schedule to the Customs Act, 1975 and "from the whole of additional duty leviable thereon under Section 3 of the Customs Tariff Act''. The appellant supplied HMDS to M/s. Lupin Laboratories without levying additional duty leviable under Customs Tariff Act also. Subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand is fully justified. 3. We have perused the records and have considered the submissions made by both sides. Supplies in question are in terms of Export-Import Policy. The Customs Notifications have been issued to give effect to the Export-Import Policy. Therefore, both the provisions have to be seen as parallel and complementary and should be construed as to support each other. M/s. Lupin Laboratories Pvt. Ltd. is an exporter and they had obtained advance licences for the import of materials for their export production. Chapter 7 of Export-Import Policy 1997-02 relates to (Duty Exemption Scheme). General provisions in Para 7 relating to issue and terms of advance licence, the benefit under those licences and the provisions for issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port of goods in which such inputs have been used; (c) If the importer uses the inputs for manufacture and sale in the DTA of excisable goods, he may claim Modvat in respect of the additional customs duty so paid, immediately upon the said inputs entering his factory: (d) If the importer uses the inputs for manufacture and sale in the DTA of goods, which are not excisable or not dutiable or not eligible for Modvat benefit, he shall not be eligible to any rebate or adjustment of the additional customs duty so paid. 7.4 (i) Notwithstanding anything contained above, exemption from payment of additional customs duty and Anti-dumping duty shall be allowed in respect of Advance Licences, issued with actual user condition to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licences issued in terms of Para 7.4 would be exempt from additional customs duty and anti-dumping duty as well and the conditions of both the licences are different. Notification No. 30/97-Cus relates to licences issued under Para 7.4 and these imports are exempt from additional duty of Customs too. Advance Release Orders issued under Para 7.15 may be in respect of advance licences issued in terms of Para 7.3 or 7.4. The advance licences held by Lupin Laboratories Pvt. Ltd. admittedly was issued under Para 7.4. As a result, the materials imported under that advance licence was eligible for exemption from additional duty of customs also. Procurement from domestic market under Advance Release Orders may be from EOU/canalising agencies/domes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the sourcing of import, without in any way benefiting the treasury. 5. We find merit in the contention of the assessee appellant. Its buyer was an advance licence holding export manufacturer. Advance Release Orders were issued to him so as to enable him to procure from Indian producers as well. Since the advance licence was issued under Para 7.4 any import under that licence was eligible for customs duty exemption, including additional duty of customs. The status of advance release order is the same as advance licence. Therefore, supplies against advance release order had also to be on same terms, if domestic supply was to match imports. Therefore, in this scheme of Export-Import Policy and Excise and Customs taxation, it is essential t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
