2007 (8) TMI 222

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....appellants imported Silk free of duty under the Advance Licensing Scheme with the condition for fulfilment of export obligation. It is on record that the appellant obtained quantity in excess of their requirement for fulfilling export obligation. In other words, a part of the quantity of silk imported was not utilized for fulfilment of export obligation. This has been confirmed by the JDGFT also. The goods were originally imported during October 1997 to April 1998. At the time of import of the goods, the appellants executed bond and Bank Guarantee. On 16-12-2002, the department invoked the Bank Guarantee and adjusted the duty amount payable by the appellant. Even though the JDGFT informed all the facts only in September 2003, the department....

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....pellants imported goods free of duty under Advance Licensing Scheme in terms of the Customs Notification 30/97-Cus., which has been mentioned in the impugned Orders-in-Appeal. In the last paragraph, it is said that the fact that the goods in the present case were released by extending the benefit of Notification 30/97-Cus. cannot be disputed. Therefore it is clear that there is an obligation on the part of the appellant after import of the goods to use them only for manufacture of products, which are to be exported. Therefore, the contention that they have not violated any condition of the Notification is not correct. Moreover, at the time of import, they had also executed a bond and a bank guarantee. What is the purpose of the bond? The ap....