TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 610
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....lizing the scrip. In the course of the appellant's business, the appellant sends the imported 'PTC thermistors' and other raw materials to M/s. EMOX Device and Company on job work basis for manufacture of electronic mosquito repellent machines. The appellant is stated to have reversed the credit taken while sending the goods to the job work manufacturer who sends the manufactured goods back to the appellant on payment of applicable excise duty. The appellant is stated to be availing Cenvat credit of the same. Thereafter, the appellant undertakes testing, repacking, shrink-wrapping, palletization, etc. and exports the said goods. 3. Based on investigation conducted, the Department was of the prima facie view that the appellant had not complied with the conditions of the Customs Notification No. 73/2006 -Cus ibid. The notification exempted goods when imported into India against a duty credit entitlement certificate issued under Target Plus scheme in accordance with paragraph 3.7 of the Foreign Trade Policy, from the whole of the duty of customs leviable thereon under the first schedule to the Customs Tariff Act, 1975 and the whole of the additional duty leviable thereon under ....
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....ommission of Customs (Appeals-I), Custom House, Chennai. The appellate authority rejected the appeal vide the impugned Order in Appeal. Hence, the instant appeal. 5. Shri M Karthikeyan, Ld. Advocate, appearing, for the appellant, drawing attention to condition 3 of the Notification No. 73/2006 ibid and para 3.7.6 of the FTP (2004-09), submitted that on a perusal of the said provisions, it can be seen that the term 'use' is used not for identifying the place of use and rather it only puts forth that it should be for the use of the exporter. In the case of merchant exporter, it could be understood from para 3.7.6 that it can be for the exporter's use or for the use of the declared supporting manufacturer. The stipulation in the customs notification that in case of merchant exporter, the goods may be utilized by the supporting manufacturer can only mean that generally the goods should be for the exporters own use, and in case of merchant exporter, it can also be for the use of the supporting manufacturer. The above provisions do not stipulate anything as to the place of use. Therefore, even if the goods are used in a job worker's premises, but for the use of the manufacture....
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....s, as imports permitted under Target Plus Scheme as per para 3.7.6 of the Policy (RE2004) are with the Actual user condition and non-transferable (except to listed supporting manufacturers)". 9. Learned Counsel placed reliance on the decisions in, a. M/s. Silver Line Plastpack Pvt. Ltd. V CCE & ST, Bhavnagar, 2015 (10) TMI 2262-CESTAT AHMEDABAD. b. Commissioner of Customs (Airport & Aircargo) v. M/s. Sunstar Overseas Ltd., 2025 (5) TMI 670-CESTAT Chennai. c. CC, (Airport) Integrated Cargo Complex v. M/s. Bharat Industrial Enterprises, 2025 (6) TMI 554-CESTAT CHENNAI 10. Learned Counsel submits that the demand of duty along with interest for the alleged contravention of the notification as well as redemption fine and penalty imposed are not legally sustainable and the impugned order is liable to be set aside. 11. Ms. Anandalakshmi Ganeshram, learned authorized appeared on behalf of the respondent, reiterates the findings of the appellate authority. She submitted that the Hon'ble Apex Court has issued notice in the petition for Special Leave to Appeal (Civil) filed by Union of India against the Judgement of the Delhi High Court in the case of India....
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....e impugned order that the Ld. Appellate Authority too, after reproducing the condition (No.3) of the said notification given above, has further held as under : " It is also useful to refer to the Para 3.7.6 of the Foreign Trade Policy. The Para 3.7.6 of the FTP 2004-09 read as below:- "the duty credit may be used for import of any inputs, capital goods including spares, office equipment, professional equipment and office furniture provided the same is freely importable under ITC (HS), for their own use or that of supporting manufacturers as declared in Appendix 17D" From the above it is clear that the condition is applicable only to the merchant-exporters where the goods imported by them and transferred to a specified supporting manufacturer for usage. That too, the name of such supporting manufacturer should have been mentioned in the Certificate. The appellant contested that they were not transferred or sold the imported goods against the condition of the notification and under the Duty Credit Entitlement Certificate. In instant case, the investigation has revealed that the appellant instead of using the imported goods in their manufacturer of resultant....
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....tification does not prohibit processing of the import goods into finished final goods by the job worker. The relevant portions of the decision is reproduced below: "5. For better appreciation of the provisions of the notification, the relevant portion of the Notification No.32/2005-Cus., is reproduced below:- "Exemption to imports against a duty credit certificate issued during 2004-05 under Target Plus Scheme" In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts goods when imported into India against a duty credit certificate issued under the Target Plus Scheme in accordance with paragraph 3.7 of the Foreign Trade Policy (hereinafter referred to as the said certificate) from, - (a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); and (b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, -subject to the following conditions namely :- (1) that the bene....
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.... possible resultant products, when imports are made for "own use". Note: The beneficiary status holder (Manufacturer Exporter or Merchant Exporter) can utilize full value of credit scrip issued to him for his "own use". Beneficiary may decide to make any possible resultant product for utilizing the imports permitted under the Scheme, when imported for "own use". Job-Workers can be used for conversion of imports permitted under the scheme into any possible resultant products. Upon conversion in the factory of Job-Worker, the resultant product can be sold in the open market, upon payment of duties as applicable to the resultant product; including to the conversion unit (i.e. job worker). Sale of permitted products to Job Workers prior to conversion (into any possible resultant products) shall be treated as a violation of AU and Non-transferability conditions, as imports permitted under Target Plus Scheme as per Para 3.7.6 of the Policy (RE2004) are with Actual User Condition and non-transferable (except to listed supporting manufacturers)." The said Annexure mentions about listing of job workers for conversion of permitted imports into possible resultant products, w....