TaxTMI 
TaxTMI 
2017 (2) TMI 934
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....an advance licence holder to import raw material free of duty for use in manufacture and export the finished goods, it did not cause dumping of the raw material since the raw material imported were used in manufacture of the finished goods and such finished goods exported. Therefore, there is no reason to deny the exemption from anti-dumping duty to the appellant under Notification No. 43/2002-Cus. dated 19.4.2002. Appellant placed both the notifications as under for appreciation of intention thereof: Notification No. 43/2002-Cus., dated 19-4-2002 Duty Exemption/Remission Scheme - Exemption to Import against Advance Licence issued thereunder "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India, against an Advance Licence issued in terms of sub-paras (a) and (b) of paragraph 4.1.1 of the Export and Import Policy (hereinafter referred to as the said licence), from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Custo....
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....Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry and Garhi Harsaru or through the Land Customs Station at Ranaghat and Singhabad : Provide that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit import and export from any other Seaport/Airport/Inland Container Depot or through any Land Customs Station; (v) that the export obligation as specified in the said licence (both in value and quantity terms) is discharged within the period specified in the said licence or within such extended period as may be granted by the licensing Authority by exporting resultant products, manufactured in India which are specified in the said licence and in respect of which facility under rule 18 or rule 19 of the Central Excise Rules, 2002 has not been availed : Provided that an Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant products to ultimate exporter in terms of sub-para (b) of para 4.1.1 of the said Export and Import Policy; (vi) that the importer produces evidence of discharge of export....
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....) fuel, oil and catalysts required for manufacture of resultant product; and (d) packing materials required for packaging of resultant product. [Emphasis supplied] Notification No. 56/2003-Cus., dated 1-4-2003 Advance licence for annual requirement with actual user condition - Exemption to import made thereagainst In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India against an Advance License for Annual Requirement (hereinafter referred to as the said license), with Actual User Condition in terms of Paragraph 4.1.7A of the Export and Import Policy from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely, - (1) that the said licence shall be issued to a manufacturer exporter or merchant-exporter holding Expor....
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....hrough any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur. (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota. Udaipur, Ahmedabad, Bhiwadi, Madurai, Garhi Harsaru, Bhilwara and Pondicherry or through the Land Customs Station at Ranaghat, Singhabad and Raxaul. Provided that the Commissioner of Customs may by special order or a public notice and subject to such conditions as may be specified by him, permit import and export through any other sea port, airport, or Inland Container Depot or through a land customs station; (7) that sourcing of the imported materials from Private Bonded Warehouses set up under paragraph 2.28 of the Export and Import Policy would be allowed; (8) that the export obligation is discharged within eighteen months from the date of issue of the said licence or within such extended period as may be granted by the Licensing Authority ....
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....r; (b) mandatory spares within a value limit of 10% of the value of the licence which are required to be exported along with the resultant product; and (c) packaging materials required for packing of resultant product. [Emphasis supplied] 2.1 Appellant further submitted that DGFT issued an office memorandum on 02.09.2008 to entitle the appellant to the benefit of Notification No.43/2002-Cus. dated 19.4.2002, explaining that the Foreign Trade Policy does not differentiate the advance licence issued under para 4.1.1 and 4.1.7A of the EXIM policy of the relevant period. Recommendation was made by that Authority to the Department of Revenue to amend customs Notification No. 56/2003-Cus. dated 1.4.2003 to allow anti-dumping duty, exemption on import of raw material to the licences issued under para 4.1.7A also. 2.2 Appellant further explained that para 4.1.1 of the EXIM Policy which reads as under, grants the same benefit that is intended by para 4.1.7A of the said Policy. Para 4.1.1 "An Advance Licence is issued to allow duty free import of inputs, which are physically incorporated in the export product (making normal allowance for was....
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....e addition." 3. It is further grievance of the appellant that the Notification No. 56/2003-Cus. dated 14.2003 is redundant in view of the specific Notification No. 43/2002-Cus. dated 19.4.2002. He also says that the superfluous notification No. 56/2003-Cus. dated 1.4.2003 needs to be struck down. 4. Lastly appellant prayed that in the event the benefit of exemption of anti-dumping duty is not given to the appellant, it should not be deprived of the drawback benefit permissible to it since its finished goods were exported which comprised the imported raw material. 5. On the other hand, Revenue's submission is that the grant of notification is always subject to satisfaction of the conditions thereof. Notification No.56/2003-Cus. dated 1.4.2003 grants duty exemption to the advance licence issued under para 4.1.7A of the Exim policy 2002-2007. But the Notification No. 43/2002-Cus. dated 19.4.2002 granted antidumping duty exemption only to advance licences issued under paragraph 4.1.1 of the Exim policy. Both the notifications operated on their own field. When there was specific prescription by the Notifications, there is no ambiguity in interpretation or application thereo....
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....s issued under para 4.1.7A which is specifically governed by Notification No.56/2003-Cus dated 01.04.2003. For appreciation of such intention, the Office Memorandum reading as under is reproduced below: F. No. 01/94/180/22/AM09/PC-4/12247 GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DIRECTORATE GENERALOF FOREIGN TRADE UDYOG BHAVAN,NEW DELHI 110 011. Dated 2.9.2003 OFFICE MEMORANDUM Sub: Exemption of Anti-dumping duty for annual requirements The undersigned is directed to forward herewith a copy of letter dated 14.5.2008 received from Sri K. Chandra of Chennai seeking clarification on the above subject. Since Advance Authorisation for Annual Requirement is an Advance Authorisation issued on the basis of Annual Performance of the preceding year. Foreign Trade Policy does not differentiate on the duty component for exemption whether it is against Advance Authorisation for Physical Exports, Deemed Exports, Intermediate supplies or for Annual Requirement. Basic aim of Advance Authorisation for Annual Requirement is to reduce the interface of exporters with (Regional Authorities) issuing the Authorisations to allow flexib....