2023 (9) TMI 875
X X X X Extracts X X X X
X X X X Extracts X X X X
....lously the procedure prescribed under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. The Department's objection for denying the benefit of the exemption Notification is that the said manufacturing activity was carried out not at the Appellant's factory but at the premises of M/s Tuton Pharma, GIDC, Ahmedabad and, therefore, the Appellant, as an importer, is not the manufacturer. Very significantly, the said premises of M/s Tuton Pharma was duly declared in the Bonds and also duly registered as "additional place of business" Appellant in terms of the CGST Act, 2017. 3. Shri Willingdon Christian, learned Advocate appearing for the appellant submits that neither the subject Notification nor the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 make it mandatory that the use of the imported goods should be at the importer's own factory. In other words, once the importer has utilized the imported goods for the specified purpose, the benefit of the exemption cannot be denied, even if the process has taken place in the factory of loan licensee/job worker. There is no dispute that the imported goods were used on behalf of the Appellant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CR Rules, 2017 reading as under :- "Rule 3(e): "manufacture" means the processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly." Thus, the subject Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 being part of the subject Notification provides for separate connotations for the words "importer" and "manufacturer" respectively. 6. Apart from the above, among the particulars to be furnished to the Deputy Commissioner, one of the information in clause (i) is "the name and address of the manufacturer". Thus, it is obvious that the importer will also require to furnish particulars of the name and address of the manufacturer apart from his own name as importer. 7. In support of the above submissions, the Appellant relied upon the following judgments: (a) 1990 (50) ELT 210 (Guj.) Indica Laboratories Pvt. Ltd. (b) 2017 (357) ELT 464 (T) FDC Ltd. vs. CCE (C) 2017 (358) ELT 990 (T) Finolex Cables Ltd. vs. CC (D) 2019 (370) ELT 1637 (T) Torrent Pharmaceuticals Ltd. vs. CCE 8. Learned Advocate contended that the following judg....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 whether goods can be used in the importer's own factory or also can be used in the job worker factory. There is no dispute the goods were used on behalf of the appellant in their loan licensee (job work factory) on behalf of the appellant only. The ownership of goods remained with the appellant right from import of the goods up to the use in the final product. In this position, in our view the imported goods used for the specified purpose, the condition of end use stands complied with. The whole objective of the duty free imported bulk drug is that it should be used in the manufacture of life saving drugs or medicine. In our view, if this condition is fulfilled while the ownership of the goods is with appellant, it can be said condition of the end use is satisfied. This issue has come up in the case of Tamil Trading Corporation Ltd. (supra), wherein the Tribunal has passed the following order : "We have gone through the records of the case carefully. The Customs Notification No. 21/2002-Cus. provides concessional rate of duty for imported Crude Palm Oil for the manufacture of refined oil. Conditio....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... carrying of repairs/re-conditioning, etc. In the above said Circular the Board has clarified that the goods received duty free can be removed to another eligible manufacturer under the Central Excise (Removal of Goods under the Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. However, the recipient manufacturer would require Registration under Rule 3 of the said Rules. In our view, denial of Registration under Rule 3 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 to the importer on the ground that he does not have own a factory in which the imported goods are to be used is very much against the Exim Policy, Board's Circular and the Hon'ble Gujarat High Court interpretation of manufacturer under Section 2(f) of the Central Excise Act, 1944. There is nothing strange or illegal in a person utilising the manufacturing facilities of another. In order to be a manufacturer one need not own a factory. The practice of more than one manufacturer using a factory is recognised as can be seen in the SSI Notification with regard to clubbing of clearances. The expression "his factory" should be interpreted to....