TaxTMI 
TaxTMI 
2023 (12) TMI 324
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....tions to offshore and onshore hydrocarbon projects. He pointed out that they had entered into a contract with M/s. Oil and Natural Gas Corporation Limited (ONGC) for construction of two well-head platforms and sub-sea pipeline at Bassein Oil Field. For the purpose of laying sub-sea pipeline, the appellant had imported Carbon Steel Seamless Pipes in terms of Notification No. 21/2015-Cus dated 01.04.2015. The said goods were dispatched from M/s. Jindal Saw Limited, Mundra, who carried out concrete coating process on the imported pipes. The said concrete coated pipes were thereafter sent to site of ONGC for completion of pipe laying by the appellant. After completion of the laying of the pipes, 190 concrete coated pipes were leftover. Le....
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....ssing subject to complying with the conditions specified in the relevant Central Excise notifications permitting transfer of materials for job work." The Condition 'X' world apply to goods imported under Notification 21/2015 namely seamless pipes. The said condition does not apply to Concrete Coated Pipes manufactured out of imported seamless pipes. 4.1 The appellants are relying on the para 4.16 of the Foreign Trade Policy, which reads as under: "Advance Authorisation and/or material imported under Advance Authorisation shall be subject to 'Actual User' condition. The same shall not be transferable even after completion of export obligation. However, Authorisation holder will have option to dispose of product manufactured ou....
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....ng licensing year. In this verification process, in case it if 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 authorization holder has the option to furnish valid duty credit scrips issued under Chapter 3 of FTP and DEPB." In terms of aforesaid paragraph, Revenue is seeking demand duty on the quantity of material imported by them and not used by them in manufacturing goods for entire export obligation in terms of advance authorization. Learned Counsel argued that ....
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....tion cannot be invoked. He relied on the decision of Hon'ble Gujarat High Court in Tax Appeal No. 271 of 2009. He argued that in such cases, even if there is any misdeclaration before DGFT, the Customs cannot invoke extended period of limitation on that ground as there is no misdeclaration before the Customs authorities. 4. Learned Authorised Representative relies on the impugned order. He argued that the imports were made after exports and therefore, appellant was aware of the actual consumption of the raw material. He relied on the decision in the case KDL Biotech Limited v. CC (Export Promotion), Mumbai - 2015 (327) E.L.T. 305 (Tri. - Mumbai) to argue that in identical circumstances, the demand was upheld. 5. We have go....
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....that the provisions of Para 4.28 of HBP are applicable to all advance authorization. It is seen that the entire foundation of the Revenue's case is based on Para 4.28(v) of HBP 2004-09 and Revenue is seeking apply the said provisions to the case where there is no default. Therefore, we do not find any force in this argument of the Revenue. 6. Moreover, we find that the policy prescribed in Para 4.1.5, it is seen that it permits use of left-over material for manufacture goods and clear the same in Domestic Tariff Area. Para 4.1.5 of FTP 2004-09 reads as under :- "4.1.5. Advance Authorisation and/or materials imported thereunder will be with actual user condition. It will not be transferable even after completion of export o....
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....ically possible to precisely point out the exact input-output required which would be applicable for all manufacturers. Moreover such norms are based upon the feed back from the Trade Association which would normally be in the worst scenario. Foreign Trade Policy does not state that licence holder can use the surplus raw material imported duty free for own use. On the contrary, Handbook clarifies that duty is to be paid or additional export obligation to be fulfilled. We also note that advance authorization are issued based upon ad hoc Norms or self-declared norms in terms of Handbook only. When Handbook authorizes use of ad hoc norms or self-declared norms, we do not see any rationale in questioning that Handbook is trying to restrict the ....