TaxTMI 
TaxTMI 
2023 (6) TMI 658
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....s. 68,75,451 and demand [order-in-original no. 12/ANS-12/ASB INTERNATIONAL/TH-I/2012 dated 27.12. 2012] of Rs. 3,88,600 under section 28 of Customs Act, 1962, along with interest thereon under section 28AA of Customs Act, 1962, and imposition of penalties of like amount under section 114A of Customs Act, 1962 for the period from 13th April 2005 to 5th June 2009 and from 5th August 2009 to 5th February 2010 in orders of Commissioner of Central Excise, Thane-I. The appellant had been issued with the respective notices dated 6th April 2010 and 18th August 2010 for alleged wrong availment of exemption accorded to 'inputs' required for manufacture of goods intended for export even though the impugned 'polyethylene (PET) granules' were actu....
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.... and, thereafter, sold as scarp on payment of applicable duties of customs. The case of the appellant, according to Learned Consultant, is that the 'polyethylene (PET) granules' are, undeniably, 'inputs' necessary for marketability of 'moulds' exported by them. 4. He submitted that the adjudicating authority has erroneously concluded that the 'polyethylene (PET) granules' not being deployed in the finished goods that are exported but in goods that were never intended to be exported would not fall within the purview of eligible inputs even though testing of the exported goods using 'polyethylene (PET) granules' is essential to the process. It was his contention that 'consumables', as defined in 9.15 of the Foreign Trade Policy (FTP), are ....
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....oods in fulfilment of export obligation. It was also pointed out by him that, for the period between March 2010 and March 2013, the appellant was proceeded against for ineligibility to avail CENVAT credit from lack of conformity of 'polyethylene (PET) granules', on which duty liability had been discharged, with definition of 'inputs' when used for testing, as in the impugned duty, and, on clear finding of nexus with manufacture of 'moulds', the same jurisdictional Commissioner of Central Excise [order-in-original no. 01/SJB-01/ASB In/K-IV/TH-I/2013 dated 7th June 2016] dropped proceedings. On specific enquiry with Learned Authorized Representative, it was ascertained that the said adjudication had been accepted. 7. According to Learned A....
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....ategory of goods in the conceptual framework but allows 'all types of goods' in paragraph 6.2(b) and even the Handbook of Procedures (HoP), in paragraph 6.5.1, has clubbed 'raw materials, components, consumables, intermediates, spares and packing materials' as one distinct category for the purposes of exemption implying, thereby, that these are all inputs in the manufacturing process. The definition of 'consumables' in paragraph 9.15 of the Foreign Trade Policy (FTP) is broad enough to cover goods that do not go into the final product but, nonetheless, is essential to the final product. An untested product, especially custom-made, as held in re Flex Engineering Ltd, is not a product that will be accepted by the customer and, therefore, unde....