2022 (9) TMI 327

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....d in the manufacture of different types of paper products falling under Chapter 48 of the Central Excise Tariff Act, 1985. The Respondent on receipt of orders for export of mini ATM rolls from Overseas buyers, applied for grant of Advance Licenses for duty free import of thermal paper, which was to be used as raw material for export of the ATM rolls. Based upon the application filed by the Respondent, the Office of the DGFT, Mumbai granted Advance Licenses in favour of the Respondent. The Advance Licenses issued in favour of the Respondent were governed by certain terms and conditions, some of which are reproduced hereinunder :- "An Advance Licence is issued to allow duty free import of inputs, which are physically incorporated in ....

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....ay 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 sub-rule (2) of 19 of the Central Excise Rules, 2002 have not been availed." "1(vii) that the said licence and the materials shall not be transferred or sold." The Advance licence also required that the import of goods be in accordance with Conditions 6 and 7, which are reproduced hereunder :- "(6)The exempt goods imported against this licence shall be utilized in accordance with the provisions of the Export Import Policy 2004-09 and the relevant customs Notification (No.93-2004-Cus., dated 1 September 2004) as amended from time to time.....

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....n to the Respondent to redeem the said goods on payment of redemption fine of Rs.15,00,000/-. The demand of Rs.64,72,389/- was also confirmed along with an equal amount as penalty and interest. 6. An appeal was preferred by the Respondent before the CESTAT, who by virtue of the Order impugned dated 9 April 2019 allowed the appeal on the ground that the Respondent had already achieved the requisite export obligation in respect of the license No.310272122 dated 1 June 2004 and further that the Respondent had also paid the essential excise duty along with interest in respect of the raw materials procured by it without payment of central excise duty. It further held that having duly complied with the export obligations, the Respondent could ....