TaxTMI 
TaxTMI 
2025 (6) TMI 554
X X X X Extracts X X X X
X X X X Extracts X X X X
....us. dated 08.04.2005 to the importer and thereby dropped all the proceedings contemplated vide Show Cause Notice. Before proceeding to consider the merits of the appeal, we find it more appropriate to refer to the appeal papers filed by the Revenue: in most of the pages we find lot of markings, underlining, highlighting, extra remarks written on the margins and the same has been filed in a very casual manner by the Revenue which we to take serious note of. The pages are found not to be properly/fully numbered and bound. The same reflects the very casual approach of the Appellant in filing the present appeal which we cannot accept. This is because the said markings/highlights, underlines, remarks on the margins, etc. are intended to lead or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct that certain exporters of agro, marine and ready-made garments were indulging in mis-use of Target Plus Scheme (TPS) by utilizing the licences obtained under the Target Plus Scheme for import of various grades of plastic granules like High Density Polyethylene (HDPE), Low Density Polyethylene (LDPE) Linear Low Density Polyethylene (LLDPE), Polypropylene, etc. 3. They have admitted that they had never imported plastic granules earlier and that they have never used the plastic granules/the resultant products in any of the products exported by them so far. Even the import consignments of M/s.BIEL made under TPS have all been procured from other importers on High Seas Sale/in-bond transfer basis and the same never reached the premises of M/....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... value of the entitlement certificate. Thus what is clear from the import policy is that refers to the goods imported with reference to any of the product groups of the export goods; in other words, goods required for one product group cannot be imported when the product exported falls under another product group. 4.2 It is not the case of the department that the plastic granules are not required for manufacture of packing material for the same product group in which 'rice' falls. Thus, the items actually imported will fall within the definition of inputs for manufacture and packing of export products within the same "product group"; since export obligation has already been discharged on the basis of which the Target Plus certifica....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ducts (made from converting the inputs imported under the scheme) in the market which could be either domestic market or international market as per beneficiary's choice. However, sale of resultant product to conversion unit shall not be permitted". 6.2 The above clarification was further clarified by the DGFT vide letter dated 25.09.2007, which is extracted in the impugned order, the same is reproduced here in below for further clarity: "This observation on "sale of resultant product" to conversion units is not correct. In fact, the correct position is that sale of imported inputs to conversion units is not permitted. Nevertheless resultant products can be sold to conversion units, after payment of state and central duties, like excis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tilization of the duty credit by effecting imports. The TPS is thus an additional incentive given to accelerate the growth of exports, FTP is referable to the provisions of Section 4 and 5 of the FTDR. 14.1 The Explanation to the Notification defines the term "goods" as follows : - "goods" means any inputs, capital goods including spares, office equipment, professional equipment, office furniture and agricultural products listed in Chapters 1 to 24 of the First Schedule to said Customs Tariff Act as may be notified by DGFT from time to time, which are freely importable under the Foreign Trade Policy. 14.2 Further, the take away from the decisions of Hon'ble Delhi High Court in Union of India Vs Indian Exporters Grievance Forum (supra)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d as inputs must find physical incorporation in the export products in relation to which the benefit of the TPS is claimed. In fact, even para (3.2.5.) of the Handbook of Procedures, which spells out the meaning of the broad nexus requirement, does not impose such a condition. (Bombay HC). 15. What emerges from the above rulings wherein para 3.7.6 of FTP in question has been interpreted to the effect that the policy provisions do not restrictively require the assessee to prove that the goods imported by them were usable in the very products which were exported by them for TPS certificates. 16. From a cumulative reading of both paras of FTP, the reference „product groups' has been liberally interpreted by the constitutional courts ....