TaxTMI 
TaxTMI 
1994 (10) TMI 81
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Customs Act, 1962 (for short "the Act") not to follow the instructions issued by the Directorate General of Foreign Trade by its Circular dated 27 April, 1994 on which the petitioner strongly relies. 2.There are two respondents namely, (1) the Union of India in the Ministry of Commerce (Directorate General of Foreign Trade), and (2) the Central Board of Excise & Customs through the Director (Customs). 3.The facts are quite in brief. An advance import licence was issued on 26 April, 1993 by the Joint Director General, Foreign Trade, Bombay, to Peico Electronics & Electricals Limited for import of integrated circuits (I.Cs.) and certain other items. The value of the licence was Rs. 71,42,728/- and it was valid for a period of 12 months. The resultant product, which the licensee was to export within a period of 12 months from the date of the issue of the licence, was Radios (CKD/SKD) of the value of Rs. One crore (FOB). The licensee transferred this licence to M/s. Hardware Trading Corporation who in turn re-transferred the same in favour of the petitioner. On the authority of the licence, the petitioner imported I.Cs. (50,000 sets) of the value of Rs. 19,11,930/-. The petition....
X X X X Extracts X X X X
X X X X Extracts X X X X
....espect of the Value Based and Quantity Based Advance Licences, irrespective of the fact that the exports have been made against the licences issued before of after 14-9-1993 and irrespective of fact that the items included in these Licences fall in the sensitive list notified on 14-9-1993 vide Public Notice No. 163 (PN)/92-97, dated 14-9-1993. The entries in the standardized(ii)/notified Input-Output Norms in many cases are in generic terms. The duty-free licence holders are, therefore, entitled to import an input of any specification or grade, including Plastic Polymers and other sensitive items, provided the rate of Customs duties on different grades is the same and provided that in respect of sensitive items the quantities or the values of these inputs are conforming to the quantities and values specified in the duty-free licence. After careful consideration of the matter and in relaxation of the policy with the approval of Director General of Foreign Trade in terms of Paragraph 21 of the Export & Import Policy, 1992-97, it is hereby clarified that the Customs Authorities shall clear the imports as per duty-free licences (Value Based or Quantity Based) issued without insisting ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xim Policy 1992-97, direct the Customs Authorities to clear the imports as per duty-free licences without insisting on details of specifications/grades. The instructions further direct that exports permitted provisionally should be entered into the DEEC so that the exporters are in a position to submit their cases for redemption to the licensing authorities. The issue has been examined by the Board and it has been decided that instructions issued by the D.G.F.T. shall not be followed in so far as these instructions are not in conformity with the conditions of Customs notifications and the instructions issued by the Board from time to time in this regard. It must be ensured that exemption from duty on inputs imported against duty-free licences under Duty Exemption Scheme are allowed strictly in terms of legal provisions of the Customs notifications and the instructions issued by the Board. In all the cases where instructions issued by any other department or Ministry are not in conformity with the Customs Law/notifications or the instructions issued by the Board, the field formations should only follow the instructions issued by the Board and bring to the notice of the Board any c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aterials" is as under :- "Raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export product." 7.It was, therefore, submitted that the Assistant Collector was well within his right to examine if the imported goods could be used for the manufacture of the export product, namely, Radios (CKD/SKD). Mr. Lokur said the assessing authority was bound to give effect to the notification and circular issued by the D.G.F.T., or the guidelines issued by the C.B.E.C. were only for guidance and did not bind a "quasi judicial" authority. It was submitted that if goods under the import were found to satisfy the definition and other conditions as contained in the notification, the same shall be released and that during the course of proceedings the circular issued by the D.G.F.T. shall be duly considered and shall be followed to the extend the said guidelines are in conformity with the legal definition of "materials" as preferred to above. 8.The Supreme Court in Union of India v. Narasimhalu - 1962 (2) SCC 658, made a pointed observation that the Sea Customs Act, 1878, was a complete Code dealing with the liability to pay Customs duty an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on) Act, 1992. He is to advise the Central Government in the formulation of the export and import policy and shall be responsible for carrying out the policy (Section 6). This Act has been enacted to provide for the development and regulation of foreign trade, for facilitating imports into and augmenting export from India, and for matters connected therewith or incidental thereto. The Customs Act, 1969 has been enacted to consolidate and amend the laws relating to Customs. The Customs Tariff Act, 1975, has been enacted to consolidate and amend the laws relating to Customs Duties. It provides the rates at which duties of Customs shall be levied under the Customs Act. Section 3 of the Foreign Trade (Development & Regulation) Act, 1992, gives power to the Central Government to regulate imports and exports. This section is as under : The Central Government may, by Order published in the"3(1) Official Gazette, make provision for the development and regulation of foreign trade by facilitating imports and increasing exports. The Central Government may also, by Order published in the (2) Official Gazette, make provision for prohibiting, restricting or otherwise regulating, in all cases o....