TaxTMI 
TaxTMI 
2007 (12) TMI 159
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....for export purpose. During the year 1992, the Government of India announced its export and import policy. Under Chapter XVII of the Export and Import Policy, for the period from 1992 to 1997, duty exemption schemes were framed and explained. Under clause 49, a scheme called "Value Based Advance Licence Scheme" has been introduced. The object of the said scheme was to provide raw materials and components to exporters duty free. Under the said licence, any inputs specified in the licence could be imported duty free for the CIF value stated in the licence. The licensee is obliged to export the manufactured drugs to the value and quantity mentioned in the licence. 3. Under the Scheme, the respondent applied for and obtained five licences for import of inputs stated in the licence. Under the licences, the respondent imported the inputs upto the permitted CIF value, manufactured resultant drugs and exported the same to the quantity and FOB value prescribed in the licence within the period prescribed for. 4. The respondent as required by the appellant for the due performance of the export obligation has executed a legal undertaking, undertaking to indem....
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....cence for each exported product. But in this case, a compendious licence has been issued for several exportable products based on the application of the respondent. The respondent had not specified the value addition for each exportable product in accordance with the standard input and output norms. Hence, the respondent is not entitled to get discharged its legal agreement. 8. On the other hand, the learned counsel for the respondent contended that the the value based advance licence has been granted by the licensing authority. As per the licence, the respondent has imported the inputs for the licence stated value and exported the resultant products for the FOB value stated in the licence and thereby fulfilled the export obligations within the period of twelve months granted for such fulfillment. Several conditions were attached with the licence. All the conditions of licence have been complied with. There is no such condition incorporated in the licence as contended by the Department. Hence the appellant cannot contend otherwise now. 9. We heard the argument of the learned counsel on either side and perused the materials on record. 10. The only dispute ....
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....o be delivered to this office within 30 days from the date of expiry of the export obligation period stated above documents as prescribed in para 126 of hand book 1992-97 from time to time as evidence to prove fulfillment of export obligation imposed on this licence. (A) no import of any consignment against this licence shall be allowed to be cleared by the customs authorities covered unless a Legal Undertaking/Bond backed by Bank Guarantee for a value equivalent to one and half times the customs duty saved (para 118 of Hand Book 1992-97) is executed by the licensee( and the supporting manufacturer M/s... (which ever is necessary) with this office in the form prescribed in Appendix-XXXIV of the Hand Book of import export procedure 1992-97 and endorsement of that effect is made by this office on the import part of the DEEC issued along with this licence. The Licence for any extension that may be granted by this office on request from the licensee. (A) No import of any consignment against this licence shall be allowed clearance by the customs authority concerned unless a LEGAL-UNDERTAKING in the form prescribed in appendix-XXXIV of the hand book of import export procedure....
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....h constitutes upto 2% by weight/quantity in an export product shall not (repeat not) be utilised for import of other items permitted in this licence. (18) The C.I.F. Value of Sensitive items shall not be utilised for any other items. (19) In terms of para 109(C) of handbook of procedures 1992-97, the exporter shall account the import of sensitive items allowed under this licence in their DEEC book Part II and get attested by customs authority. (20) This Licence is issued subject to the conditions laid under the footnote/General note given under the Sl.No. 0 of Product Group CHEMICALS & ALLIED PRODUCTS of the Imports & Exports Procedures 1992-1999 (Vol-II)". 14. The respondent was issued with Duty Exemption Entitlement Certificate in which also the materials imported against the licence No.401265 dated 28.4.1994 are specified under Part C as stated in the licence. The Duty Exemption Entitlement Certificate further stated that the materials stated would be eligible for exemption from import duty subject to the conditions specified in ....
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....respect of which the conditions specified in this notification have not been complied with Provided that a bond or a legal undertaking and the declaration shall not be necessary in respect of imports made after discharge of export obligation in full, as evidenced by endorsement of Licensing Authority in the said certificate; (iii) that the said licence and the said certificate are produced before "the proper officer of customs at the time of clearance of imported goods out of customs control. Provided that no such imported materials shall be permitted clearance under this notification unless a debit entry has been made, in the said licence and the said certificate, by the proper officer of customs; (iv) that the imports and exports are undertaken from sea ports at Bombay, Calcutta, Cochin, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or through any of the airports at Ahmedabad, Bangalore, Bombay, Calcutta, Delhi, Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad and Madras or through any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, New Gauhati Goods Shed, Moradabad, Ludhiana and Hyderabad. Provided that t....
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.... Explanations. - In this notification, - (i) "Export and Import Policy April 1992 - March 1997" means the Export and Import Policy 1 April 1992 - March 1997 published vide Public Notice of the Government of India in the Ministry of Commerce No. 1-ITC (PN) /92-97, dated the 31st March, 1992 as amended from time to time. (ii) "Licensing Authority" means an authority competent to grant a licence under Imports (Control) Order, 1955 made under the Imports and Exports (Control) Act, 1947 (18 of 1947). (iii) "Materials" means - (a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export product. Provided that in the case of electronic goods and all kinds of writing instruments (including gift sets and refills/nibs), all export items covered by one serial number in the Standard Input Output and Value Addition norms as contained in Handbook of Procedures, 1992-97, Volume-11, published, vide Public Notice No. 121(PN)/92-97, dated the 31st March, 1993, of the Government of India in the Ministry of Commerce, shall be deemed to be single export product. Provided further that nothing contained in this notification ....