TaxTMI 
TaxTMI 
2005 (2) TMI 163
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....he writ petition was issued on 4th April, 1991. Rule was issued on 2nd December, 1991. By interim order passed, the demand was stayed, subject to furnishing of Bank guarantee in the sum of Rs. 2,65,047/-. The bank guarantee was furnished by petitioner and has been kept alive. 3. The facts giving rise to the filing of writ petition may be briefly noted :- (i) Petitioner is a 100% export unit, established within the Noida Export Processing Zone (in brief NEPZ). Petitioner had imported the woollen and vellore fabrics for exporting woollen and knitwear garments. Being a 100% export unit, no customs duty was paid by the petitioner in imports by virtue of Notification bearing No. 339/85....
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....sing in the course of manufacture of ready-made garments, when cleared from the Zone provided that the percentage of such waste materials in the form of rags, trimmings and tailor cuttings does not exceed the percentage fixed in this regard by the Falta Export Processing Zone Board. (iv) Petitioner claims that in pursuance to a contract entered into with a foreign buyer, the raw material was imported and finished goods were required to be exported to USSR on or before 15th November, 1999. Due to labour unrest, there was closure of the factory. About 11000 kg of the imported raw material remained unused at that time. Petitioner vide its letter dated 16th January, 1991 sought permission of respondent No. 1 to take the raw material ou....
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....out with permission and specially clause (h) makes a similar provision for rags, trimmings and tailor cuttings arising in the course of manufacture of ready-made garments, when cleared from the Zone, provided that the percentage of such waste materials in the forms of rags, trimmings and tailor cuttings does not exceed the percentage fixed in this regard by the Falta Export Processing Zone Board. 5. It is contended that the wastage claimed by the petitioner is well within the norms fixed. The wastage in fact had been brought back to the Zone. Hence no duty ought to be charged in respect of this wastage. Learned counsel further submits that it is not even the contention of the Respondents that the raw material i.e., woollen yarn and....
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.... any wastage in the process of manufacture, whether there could be imposition of this duty on such wastages. The Customs Notification 152/77, dated 15-7-1977 does not contemplate such provision for imposition of such duty on wastages occurring in the process of manufacture." Further, it is not the case of respondents that the petitioner had kept away some of the raw materials supplied to him with some ulterior purposes. 7. Mr. Aggarwal on behalf of the respondents opposes the writ petition, firstly on the ground that petitioner could have availed of regular appellate remedy and writ petition was thus not maintainable. Secondly, he submits that petitioner applied for permission to take the goods for manufacturing outside the Zone. He subm....
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....spute with regard to the petitioner having fulfilled the export obligation. There is no dispute with regard to the raw material, which was taken out, having been utilised for fabrication of knit yarns and garments, which have been exported. Petitioner has claimed wastage, which is within the acceptable norms. Additionally, it is claimed that the entire rags, trimmings, wastage, have been brought back into the unit within the Zone. The Notification itself provides for no duty being charged on the waste component, in paras (c) and (h), as noted above. The surviving question would be whether customs duty can be levied on the basis of the condition in the bank guarantee. In my view, the answer to that has to be in the negative. Once duty is not....