2003 (4) TMI 119

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....resaid items. Various raw materials and components, including die steel are required. The petitioner accordingly applied for and obtained an advance licence in terms of EXIM Policy 1988-91 inter alia for import of die steel. The licensing authority has also issued duty exemption entitlements certificate/pass book so as to enable the petitioner to import die steel without payment of duty. 3.In the light of the advance licence, the petitioner placed an order for imports of die steel from Austria. On arrival of the goods, the petitioner filed a Bill of Entry for clearance of die steel duty free as per Exemption Notification 116/1988. The Assistant Commissioner of Customs by his order dated 7-6-1989 disallowed the benefit of Notification No. 1....

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....e Counsel for the petitioner further stated that the bank guarantee furnished pursuant to the interim orders of this Court have been kept alive. 5.Mr. Sanklecha, learned Counsel appearing on behalf of the petitioner submitted that once the advance licence is granted to the petitioner to import die steel duty free as an item required for the export product, it is not open to the Customs Authorities to go behind the licence and refuse duty free clearance of the said goods. Mr. Sanklecha submitted that the petitioner fulfils all the conditions set out in the Notification No. 116/1988, dated 30th March, 1988 and hence the die steel imported by them against the advance licence is liable to be cleared duty free. Mr. Sanklecha relied upon the dec....

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.... the Notification No. 116/1988. Admittedly, under the advance licence issued, the petitioner was entitled for duty free import of die steel as a material required in the manufacture of export product. Once the Licensing Authority has accepted that die steel is a material required in the manufacture of the export product, it is not open to the Customs Authorities to go behind the licence and deny duty free clearance of the goods. The exemption Notification No. 116/1988, dated 30th March, 1988 specifically states that the materials that are required to be imported for the purpose of manufacture of resultant products shall include such items as are imported into India against the advance licence for subsequent exportation. In the instant case,....