TaxTMI 
TaxTMI 
2018 (6) TMI 1166
X X X X Extracts X X X X
X X X X Extracts X X X X
....ms of that Notification. Out of the said quantity, the appellant - importer could not produce the Certificate regarding use of quantity of 997.340 MTs for manufacture of dutiable goods since so much quantity was not at all received in the factory of the appellant. Since it appeared that the appellant had availed double benefit of DFIA Scheme rendered the quantity of 997.340 MTs of imported goods ineligible for exemption from import duty under Notification No. 40/2006-Cus, two SCNs both dated 08.09.2009 were issued to the appellant which culminated into order in original wherein the adjudicating authority has confirmed the total duty liability of Rs. 2,63,834/- along with interest under Section 28(2) and 28AB respectively of Customs Act, 1962. A penalty of equal amount of duty under Section 114A of the Customs Act was also imposed. Being aggrieved by the order in original, appellant filed appeals before the Commissioner (Appeals) who considering the facts that a quantity of 997.340 MTs was not at all received, upheld the demand of customs duty. However, the penalty imposed under Section 114A of the Act was set aside. Accordingly, the order in original was modified. Being aggrieved b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....shortage could not be denied. The Ld. Counsel has heavily relied upon the Hon'ble Supreme Court judgment in the case of BPL Display Devices Ltd. (supra) and Hon'ble Allahabad High Court judgment in the case of Jhoonjhunwala Vanaspati Ltd. (supra). On perusal of all the judgments and relevant Notification, we find that in the present case, the Notification 40/2006-Cus stipulates the following condition: General Exemption No. 132 Exemption to imports against Duty Free Import Authorization- 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 a Duty Free Import Authorisation issued in terms of paragraph 4.2.1 and 4.2.2 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) 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, safeguard duty and anti-dumping duty leviable thereon, respectively, under sections 3, 8B an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....then the importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer within six months from the date of clearance of the said materials, that the imported materials have been so used: Provided that, in case, (a) materials are imported against an authorisation transferred by the Regional Authority, or (b) the imported materials are transferred with the permission of Regional Authority, then the importer shall pay an amount equal to the additional duty of customs leviable on the materials so imported or transferred, but for the exemption contained herein, together with interest at the rate of fifteen per cent. per annum from the date of clearance of the said materials: Provided also that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained he....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005): Provided that the Commissioner of Customs may, by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport or airport or inland container depot or through any land customs station; (v) that the export obligation as specified in the said authorization (both in value and quantity terms) is discharged within the period specified in the said authorization or within such extended period as may be granted by the Regional Authority by exporting resultant products, manufactured in India which are specified in the said authorization: Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to the exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy; (vi) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of....