Transfer of imported goods: veiled sales through replenishment by merchant exporters negate duty-free advance licence benefits. Whether goods imported duty free under Notification No. 204/92 by a Merchant Exporter and supplied as replenishment to a supporting manufacturer constitute a transfer is decided by the scheme's intention: licences and imported materials are subject to an actual user condition. Outright purchases embedding input costs amount to a veiled sale and disqualify duty free benefit where Modvat has been availed; job work or contracts limited to jobbing charges that do not transfer ownership satisfy the Notification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transfer of imported goods: veiled sales through replenishment by merchant exporters negate duty-free advance licence benefits.
Whether goods imported duty free under Notification No. 204/92 by a Merchant Exporter and supplied as replenishment to a supporting manufacturer constitute a transfer is decided by the scheme's intention: licences and imported materials are subject to an actual user condition. Outright purchases embedding input costs amount to a veiled sale and disqualify duty free benefit where Modvat has been availed; job work or contracts limited to jobbing charges that do not transfer ownership satisfy the Notification.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
