2015 (10) TMI 2262

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....hwanathan, Shri Jigar Shah, Shri Manish Jain Shri R. Subramanya  Advocates And Shri M.A. Patel, Consultant For Respondent: Shri Sameer Chitkara, A.R. ORDER Per: P.M. Saleem The Appellants herein were operating under the Target Plus Scheme, which provided for exemption from payment of Customs duty on import of goods, in terms of Notification No.32/2005-Cus, dt.08.04.2005. As per the provisions of said notification, they were eligible to import the goods free of duty, which were to be used for manufacture of final product, which could be cleared on payment of applicable duty. The Appellants, in the instant case, imported plastic granules and sent the same to job workers under the provisions of Notification No.214/86-CE, dt.25.03.1986....

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....olated the said provisions. He also submits that Para 3.7.6 of the Foreign Trade Policy says that the goods should be imported for "their own use". As the Appellants who did not have any facility for manufacture, had transferred the goods to their job workers, they have not used the goods by themselves. Therefore, it is a contravention of the provisions of Foreign Trade Policy, read with Customs notification. He further draws our attention to Para 5.8 and 5.9 of the Order-in-Original, wherein the Adjudicating authority tried to establish that the "transfer" of the imported goods takes place "at the time" of sending the same to the job workers. 4. It is observed from Paras 3.7.1 and 3.7.6 of Foreign Trade Policy (2004-2009) that Target Plus....

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....itions namely :- (1) that the benefit under this notification shall be available only in respect of duty credit certificate issued under the said scheme to a Star Export House on the basis of incremental growth in FOB value of exports made during the financial year 2004-05 over the exports made during the financial year 2003-04; (2) that the said certificate has been issued to a Star Export House by the licensing authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption : Provided that exemption from duty shall not be admissible if there is insufficient credit in the said certificate for debiting the duties leviable on the goods, but....

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....ication form for Target Plus Scheme 2004-05)' 10A: Listing of Job-Worker(s) for the purpose of conversion of permitted imports into possible resultant products, when imports are made for "own use". Note: The beneficiary status holder (Manufacturer Exporter or Merchant Exporter) can utilize full value of credit scrip issued to him for his "own use". Beneficiary may decide to make any possible resultant product for utilizing the imports permitted under the Scheme, when imported for "own use". Job-Workers can be used for conversion of imports permitted under the scheme into any possible resultant products. Upon conversion in the factory of Job-Worker, the resultant product can be sold in the open market, upon payment of duties as applicabl....