1991 (8) TMI 215

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....However, the department raised objection that the licence is not valid to cover the import because the evaporators referred to in the shopping lists attached to the licence should be of the type required for manufacture of the export product - 'machine tools' - the item specified against A-46. In the adjudication proceedings held by the Dy. Collector, the goods were ordered confiscation but allowed redemption on payment of a fine of Rs. 40,000/-. When the matter was taken up in appeal before Collector (Appeals) by the appellants, the same was rejected. Hence the present appeal before me. 3. Shri Deshpande, the ld. Advocate pleaded that the licence is specifically endorsed for the item 'evaporators'. In this context, he referred to the shop....

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....ed from going beyond the description of the licence. 4. Smt. Lipika Majumdar Roy Choudhury, the ld. SDR on the other hand contended that the question concerns interpretation of the description 'evaporators' endorsed in the licence. Evaporators are of many types. They are evaporators for use in the manufacture of machine tools. There are also evaporators for use in the manufacture of air-conditioners. She particularly referred to Para 8 of Apx. 17 and pointed out that when the licensing authority has endorsed 'evaporators' in terms of the aforesaid Para, it would obviously refer only to evaporators for machine tools. In this context, she sought to rely upon the decision of the Tribunal reported in 1990 (45) E.L.T. 644 in the case of K.P. En....

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.... The licensing authority may, after due scrutiny of the list, exclude therefrom any item which in his opinion is not actually used as raw material/component in the manufacture of products) exported. If at any time, it is found that an exporter obtained REP Licence under this provision for an item which was not actually used as raw material/component for the manufacture of the product exported against which the REP licence was issued, the licence in question, shall be liable to cancellation. If the licence has been used by the time the irregularity come to notices, the value of the licence shall be adjusted against the import entitlement of the exporter in any category. These actions will be without prejudice to any other action that may be ....