TaxTMI 
TaxTMI 
1999 (8) TMI 956
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....s, either locally purchased or imported on payment of duty, in the manufacture of such specified products; potassium hydroxide and potassium carbonate, as were required by it under the value based advance licences, to be exported. There is no dispute that the required quantity has been exported. The appellant also took Modvat credit of the duty paid on the material used by it for export production. On coming to know by the Department of the utilisation of the raw material for the purpose other than those specifically cleared free of duty under Notification 159/90 and also about the fact of credit being taken, issued notice proposing to withdraw the benefit of the exemption granted to the goods and seeking to recover the duty leviable thereon. Confiscation of the imported goods and imposition of penalty on the importer and some of its officials are also proposed as also interest due. 2. The importer in reply took the stand that there was no contravention of the provisions of Notification 203/92. The Modvat credit taken of the duty paid on the inputs used in the manufacture, which is contrary to the condition of the notification had been reversed under the amnesty scheme provid....
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....ification 159/90. Thus, there is no justification for the action taken by the Commissioner. 5. Departmental Representative relies upon the reasoning of the Commissioner as regards the arguments, which were raised before him and were reiterated before us. As to the other contentions, he disputes that the conditions of Notification 203/92 are more stringent; on the contrary he says Notification 159/90 contains condition which are more stringent have been contravened by the appellant. He says that, the fact that the licensing authority may have permitted export within the extended period is irrelevant in considering the applicability of the notification. He cites the judgement of the Supreme Court in Jacsons Thevara v. Collector - 1992 (61) E.L.T. 343; and the Delhi High Court judgment in Export Apparel Group v. Union of India - 1997 (91) E.L.T. 307. 6. It is necessary at this point to reproduce the specific conditions with which we are concerned both in Notification 159/90 and 203/92. We are concerned with the extract below only, those conditions with which are concerned and not the entire notification. "Notification 159/90 Condition (c) : the goods corresponding to the....
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.... appellant, in what it did, contravened the provisions of any of the conditions of Notification 159/90. Condition (c) referred to above requires export of goods corresponding (emphasis ours) to the resultant products, in respect of value, quantity description, quality and technical characteristics. The resultant products, the goods specified in Part 'E' of the Certificate were potassium hydroxide and potassium carbonate. The use of the words in clause (c) emphasised above, is significant. They can only mean that so far as the goods manufactured and exported by a licence holder confirm in respect of the value, quantity and other aspects specified in that Explanation to those specified in Part 'E', export must be considered to have taken place. In the matters before us, export is made as specified quantity of potassium carbonate or potassium hydroxide, having specified values, technical characteristics, etc. as specified in Part 'E', the export obligation has been completed. Now the use of the words "corresponding to the resultant products" in the clause is significant. If we read the clause without these words then too, export would be considered to have taken place if the products ....
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....een used in manufacture of ibuprofen, which is sold in the market. It is in this situation the Tribunal, noting that export obligation had been completed, has not found any contravention of the Notification 203/92. The issues are more or less similar to those in the appeal before us, where part of the finished products had been sold in the domestic market and export obligation had been completed by utilisation of materials other than those specifically cleared duty free. We have considered about the conditions in the two notifications and concluded there has been in fact been no contravention by the appellant before us of any of the conditions of Notification 159/90. Having regard to the words contained in the conditions in the two notifications, we are of the view that the Tribunal's decision in Dolphin Drugs Pvt. Ltd. v. CC supports the view taken by us. 11. There is another aspect of the matter to which we must draw attention. It can happen in any number of cases that the exact, physical quantity of goods cleared under an exemption, such as is contained in Notification 159/90 may not be utilised for manufacture, for reasons which are totally beyond the control of the impor....