TaxTMI 
TaxTMI 
2006 (7) TMI 371
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....ey are being decided through a common order. 2. The appellants are engaged in the manufacture and export of surfactants and speciality chemicals. These chemicals are used by them as raw materials for the manufacture of toothpaste, shampoos. One of the major and important raw material required by them is Lauryl Alcohol which is used for the manufacture of Sodium Lauryl Ether Sulphate (SLES) and Sodium Lauryl Sulphate (SLS). These products are mainly manufactured at their Taloja unit. However, the appellants were having other units at Tarapur where other products were also being manufactured. The appellants were sourcing Lauryl Alcohol by indigenous purchases on payment of appropriate duty of excise, imported under advance licence wit....
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....aloja unit and were used at the Tarapur unit it was alleged by the department that the appellants have violated the above condition No. (vii) of Notification 30/97 as the material could not have been transferred to another unit and further since the material was not used in the products which were exported but were used in the product which were sold in the domestic market it was considered that the utilization of the material was not as per requirement of condition No. (vii) as the appellants should have first used the material for discharge of their export obligation and could not have used for clearance in domestic market. A show cause notice was accordingly issued and confirmed by the Commissioner who demanded duty of varying amount in ....
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....uring for his own use in another unit including a jobbing unit." 7. It was submitted that the first portion of definition of 'actual use - industrial' contemplates the usage of the imported inputs by the licence holder's own industrial unit. In the present case, the case of the department is that they have used the imported inputs in N-46 at Tarapur, instead of using the imported inputs in Taloja Unit. It is an admitted position that the Tarapur Unit and Taloja Unit belong to them. These are two manufacturing units of the same entity, same licence holder. Hence, the user of the imported inputs in Tarapur Unit does not violate the actual condition in the Policy. 8. The case of the department is that the licence-holder has to ....
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.... the imported goods by the licence holder in his own unit, other than the one mentioned in the DEEC book. According to them, use of the imported goods by the licence holder for his own use, in any other unit not belonging to him is also covered by the second portion of the definition actual use - industrial. Accordingly, they are also covered by the second portion of the definition of actual use (industrial) inasmuch as the imported goods have been used by them for own use, in another unit of theirs. 11. It was further submitted that under Notification No. 30/97 advance licence holder cannot be prohibited from out sourcing goods imported duty free for manufactured by other persons as held by Tribunal in case of Tetra Pak (I) Ltd. v.....
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....rket to avoid contamination and total loss due to fire in factory. Decision in Dolphin case has been followed in Standard Industries Ltd. v. Commissioner of Customs, Trichy - 2001 (136) E.L.T. 124 (Tri.-Mumbai) and Jay Engineering Works Ltd. v. Commissioner of Customs, Chennai - 2003 (162) E.L.T. 680 (Tri.-Bang.). It was submitted that in the Jai Engineering Works Ltd. case it was further held that under the terms of Notification No. 204/92-Cus. which is similar to the Notification 30/97 that the Exim policy and corresponding customs notification permit duty free import of material required for the manufacture of the export product. The actual use of the imported input was not a condition under this notification. The words "required for man....
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....shment and only imbargo imposed on replenished material is that they should not be sold or transferred to any other person. Since we have already held that once the material is used in the appellant's own unit it cannot be considered to be transfer and since the other unit has not sold the material as such but used it in manufacture of the final product the requirement of condition no. (vii) have been fulfilled. As regards the use of duty free imported raw material first in the manufacture of final products required to be exported for meeting export obligation before being used for use for domestic clearances of the same product we find that the Tribunal in the cases of Dolphin Drugs, Standard Industries and Jay Engineering Works have consi....