TaxTMI 
TaxTMI 
1993 (5) TMI 89
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....ase are that the appellants have an approved manufacturing unit for the manufacture of ready-made garments situated at Noida. They filed a bill of entry for import of 192.8 kgs. of man-made filament yarn described as 'Lycra Elastane Yarn Type 239 B 44 DTEX Bright'. They declared on the bill of entry that the goods conform in every respect to the description, value and other conditions contained in the letter of approval dated 19-12-1988 issued in their favour by the Ministry of Commerce read with approved project report and claimed exemption from payment of customs duty under Notification 339/85-Cus., dated 21-11-1985. The goods were brought to the Noida Export Processing Zone (NEPZ) and on examination found in accordance with the invoice a....
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....with facility of availing of services of sub-contractors; that the raw material imported was permissible under General Exemption No. 132; import of lycra yarn might amount to breach of one of the conditions of the import licence but infringement of the licence condition does not tantamount to contravention of any provision of the Customs Act. The adjudicating authority held that import of lycra yarn was unauthorised as not being covered by necessary import licence in terms of OGL No. 20/90 read with project report and letter of approval and accordingly confiscated the imported yarn. The benefit of exemption under Notification 339/85-Cus. was also held inadmissible for non-fulfilment of condition (ii) of the notification which stipulates tha....
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....is found that the goods imported do not conform to the description as contained in the licence and such prohibition shall be deemed to be a prohibition under Section 11 of the Customs Act, 1962 and all provisions of the Customs Act, 1962 shall have effect accordingly as provided under Section 3(2) of the Imports and Exports (Control) Act, 1947. In the instant case admittedly the goods imported find no mention in the project report based on which the Letter of Approval was granted. Relevant portion of the Letter of Approval is reproduced below for a proper understanding of the issue: "Letter No. 8/30/83-NEPZ Government of India, Min. of Commerce, Dept. of Commerce dated 19-12-1988 addressed to Shri N.P. Singh, M/s. Specifique Creations P. L....
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....es per month on regular basis. The detail of consumption/valuation is as under: (i) 1 kg. Cotton knitted fabric requires 80 gms. Lycra Yarn (ii) The cost of one kg. Cotton knitted fabric is Rs. 110.00 (iii) Cost of 80 gms. Lycra Yarn is Rs. 74.00 184.00 (iv) Total cost of knitted fabric + lycra yarn is comes to (v) One kg. Cotton knitted fabric + 80 gms. Lycra Yarn will produce 5 pcs. of Leggings (vi) Cost of one legging is Rs.... 36.80 CMD Rs. 6.00 Total cost Rs. 42.80 (vii) Sales (Export) price of 1 legging is Rs. 60.00 (viii) The price of imported raw material to be used in the manufacturing of one legging is Rs. 14.80 and the Export Price of one legging will be Rs. 60/- so we will be ear....