https://www.taxtmi.com/caselaws?id=759736 In an exemption-based advance authorisation regime, customs demand, confiscation, interest, and penalties cannot rest on shortage entries or trade descriptions alone. Independent evidence is required to show that duty-free imported inputs were diverted as such into the domestic market in breach of the actual user condition. A shortage explained as process loss in hulling operations, especially where a revised SION norm supports the claimed loss, does not by itself prove illicit removal. Export obligation discharge certificates and the DGFT clarification further support the importer where misuse of imported inputs is not established, and the customs demand and penalties do not survive. en-us Thu, 03 Oct 2024 00:00:00 +0530 Tue, 08 Oct 2024 07:36:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759736 In an exemption-based advance authorisation regime, customs demand, confiscation, interest, and penalties cannot rest on shortage entries or trade descriptions alone. Independent evidence is required to show that duty-free imported inputs were diverted as such into the domestic market in breach of the actual user condition. A shortage explained as process loss in hulling operations, especially where a revised SION norm supports the claimed loss, does not by itself prove illicit removal. Export obligation discharge certificates and the DGFT clarification further support the importer where misuse of imported inputs is not established, and the customs demand and penalties do not survive. Case-Laws Customs Thu, 03 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759736