TaxTMI 
TaxTMI 
2018 (4) TMI 784
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....Foreign Trade Policy 2009 - 2014. They imported 267 Kgs of gold bars valued at Rs. 65,48,95.641/-. The imported gold without payment of duty, was supplied to M/s. Gaurika Gem s and Jewel Pvt. Ltd., who is a 100% EOU, for manufacture of jewellery. The appellant also executed the necessary bond for due accountal of import and realization of foreign exchange on jewellery to be manufactured and exported using the duty free gold bars. The dispute in the present case is that the jewellery made out of imported gold bars having not been exported out of country, the appellant as a nominated import agency, is held liable for such violation. The duty free gold was imported during the period December, 2012 to August, 2013. Show cause notice proceeding ....
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....Gowrika) by issue of Show cause notice dated 7.3.2014. Proceedings concluded by order dated 28.5.2015 issued by Commissioner of Central Excise, U daipur in the said order Commissioner confirmed the Central Excise duty demand of Rs. 11,21,54,510/-. He also imposed various penalties under section 11 AC of Central Excise Act, and Rule 25 and 26(1) of Central Excise Rules 2002. He also revalued the goods cleared to the DTA. The learned Counsel submitted that the said order covering the gold imported duty free by the appellant and supplied to M/s. Gowrika. It is his case that the nominated bank cannot be again put to Customs duty liability, in these facts and circumstances of the case. In other words, it is submitted that gold imported duty free....
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....ed facts are that the appellant imported duty free gold with a condition that same will be used in the manufacture of jewellery for export. The export of jewellery and foreign exchange realization on such export are crucial for fulfillment of obligation s of duty free import. We notice that the Foreign Trade Policy, 2009 - 14 applicable to EOU, to whom the duty free gold bars have been supplied by the appellants, have cleared the jewellery to DTA against foreign exchange remittance. The appellant in fact is the Bank who arranged the foreign exchange remittance. There is no dispute on this aspect. Para 8.1 of FTP considers such clearance by EOU as deemed export. In this background, we notice that gold imported has been put to use for intende....