https://www.taxtmi.com/caselaws?id=796375 Transfer of duty-free imported material to processors is not job work where they use independently procured principal inputs, issue tax invoices for intermediate goods, and adjust the imported material's value against the invoice price. Such arrangements constitute prohibited sale or transfer in breach of exemption conditions, supporting confiscation, duty recovery with interest, and penalty against the importing company. Import bonds remain enforceable until exemption conditions are fulfilled or the bonds are discharged; suppression of the sale as job work prevents the demand from being time-barred. A director knowingly involved in the diversion may be personally penalised under Section 112(a)(ii), with penalty reduced and its statutory basis specified. en-us Fri, 19 Jun 2026 00:00:00 +0530 Wed, 05 Aug 2026 08:48:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796375 Transfer of duty-free imported material to processors is not job work where they use independently procured principal inputs, issue tax invoices for intermediate goods, and adjust the imported material's value against the invoice price. Such arrangements constitute prohibited sale or transfer in breach of exemption conditions, supporting confiscation, duty recovery with interest, and penalty against the importing company. Import bonds remain enforceable until exemption conditions are fulfilled or the bonds are discharged; suppression of the sale as job work prevents the demand from being time-barred. A director knowingly involved in the diversion may be personally penalised under Section 112(a)(ii), with penalty reduced and its statutory basis specified. Case-Laws Customs Fri, 19 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796375