TaxTMI 
TaxTMI 
2014 (5) TMI 943
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....dents imported 43 consignments of zinc dross under 8 different Advance Licence and these imported materials were not solely used in the manufacture of resultant product to be exported outside India. A larger part of the finished goods made out of the raw materials imported duty-free against these licences were sold in the domestic market thus violating the condition laid down in the advance licences and Customs Notification No. 93/2004-Cus., dated 10-9-2004 and 94/2004, dated 10-9-2004. Accordingly, show cause notice was issued for demand of duty on the goods imported duty-free along with interest and various penalties. The respondent contested the show cause notice and after considering the contention of the respondent the adjudicating aut....
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....espondents are not required to export the resultant product. It is a general principle that the goods are not required to be exported twice against one duty-free import. Therefore, the Revenue's appeal is required to be dismissed. 5. Heard both sides and considered the submissions in detail. 6. The issue before us is that where any provision in the Customs Notifications 93/2004 and 94/2004 are in the policy prevalent in the relevant time makes it mandatory resultant product has to be manufactured out of duty-free imported raw material only or where the goods manufactured out of duty-free imported raw material can be dealt with differently provided the export obligation are made. We find that in this case the respondent has f....
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....T. 680 (Tri.-Bang.) has observed that "the Revenue's contention that the goods imported are not eligible to the notification on the ground that the said goods do not satisfy the definition of 'materials' in the Notification cannot be upheld as the use of the goods in the goods exported is not a condition precedent in the notification. The use of the imported raw materials is the option of the importer. He can either use it in the export product or import it and keep it in the factory, manufacture the export product using inputs procured from other sources, fulfil the export obligation and thereafter dispose off the raw materials imported as per Standard Input/Output Norms. If the Customs authorities take a view that certain materials are no....