2010 (9) TMI 465

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....ods to various countries. The appellant import raw materials without payment of duty under Notification No. 32/97-Cus., dated 1-4-1997 for manufacture of exported goods. During the relevant period i.e. August, 2003, appellant had imported raw materials/goods for manufacture of export goods. On 29-8-2003, a fire occurred in the materials store of appellant, due to a short circuit, consequent to which all the articles/goods stored in the godown got destroyed. 3. A show cause notice dated 2-5-2004 was issued demanding customs duty foregone on such raw materials imported duty free along with demanding interest and invoking penal clauses. The appellant herein resisted the show cause notice on various grounds, namely on the ground that th....

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....y the supplier of the goods on job work. It is his submission that the provisions of Rule 8 of the Customs (Import of Raw Material at Concessional Rate of Duty) Rules, 1996 are clear in this regard as the goods which were imported by them were to be used for intended purpose i.e. export of goods. He would rely on the decision of BPL Display Devices Ltd v. CCE, Ghaziabad reported in 2004 (174) E.L.T. 5 (S.C.) for the proposition that even some portion of inputs are damaged and could not be used for the manufacture, the benefit of notification cannot be denied. The learned Advocate would also rely on the Division Bench judgment in the case of Vamsadhara Paper Mills Ltd v. CC, Visakhapatnam reported in 2009 (247) E.L.T. 751. 6. Learned DR o....

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.... :- "Goods for Jobbing and Re-export : Bisc and CVD nil 32/97-Cus, dated 1-4-1997 as amended by 1/99-Cus., dated 1-1-99, 50/99-Cus., dated 29-4-99, 89/99-Cus., dated 6-7-99 (Corr. by GSR 776(E) dated 21-11-2002). In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 81/95-Cus., dated the 31st March, 1995, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods imported into India from the whole of the duty of Customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, ....