2019 (12) TMI 953

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....el for the appellant pointed out that they are manufacturing goods availing benefit of imports duty free advance authorization. He pointed out that as per duty free advance authorization the appellant are allowed to import certain quantity of goods subject to value limits, for export of finished goods. The quantity of goods importable by them is determined by Standard Input Output Norms (SION) norms. As a result, while they were permitted to import certain quantity against advance authorization duty free, they actually needed the lesser quantity to manufacture the goods required to be exported. Learned Counsel pointed out that Revenue is seeking to demand duty on account of their efficient manufacturing process. Learned Counsel pointed out ....

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....s manufactured out of such imported raw materials to domestic market, in terms of Para 4.1.5 of Foreign Trade Policy (FTP). He submits that in case there is any inconsistency between the provisions of FTP and HBP, then FTP provisions will prevail over HBP. He relied on the following decision to assert that Handbook of Procedure and Foreign Trade Policy should be read harmoniously:- (a) Sri Venkataraman Devaru & Ors vs. State of Mysore & Ors - AIR 1958 SC 255 (b) Krishan Kumar vs. State of Rajasthan & Ors - AIR 1992 SC 1789 (c) Sultana Begum vs. Prem Chand Jain - AIR 1997 SC 1006 (d) Sarla Performance Fibers Limited vs. Commissioner of Central Excise - 2010 (253) ELT 203 (Tri. Ahmd.) (e) BRG Iron ....

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.....   ...............   ................ (v) RA shall compare relevant portion of Appendix-23 duly verified and certified by Chartered Accountant with that of norms allowed in Authorisation(s) and actual quantity imported against Authorisation(s) in the beginning of licensing year for all such Authorisations redeemed in preceding licensing year. In this verification process, in case it is found that Authorisation holder has consumed lesser quantity of inputs than imported, Authorisation holder shall be liable to pay customs duty on unutilized value of imported material, along with interest thereon as notified, or effect additional export within the EO period. However, for the customs duty component, the authorisat....

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.... KDL Biotech Limited (supra) wherein in Para 27, the following has been held:- "27. We have considered the submissions. There is no dispute that the raw material imported was far in excess of that required by the appellant. This fact was not brought to the notice of the licensing authorities so that they could have issued the licence as per the actual requirement. Even after duty free importation, the appellants have neither made additional exports, nor paid the Customs Duty. These details were suppressed and came to light during investigation. Accordingly, we hold that there is a violation of the provisions of Handbook read with Foreign Trade Policy and since the exemption is granted to raw materials imported against Advance Autho....