TaxTMI 
TaxTMI 
2004 (4) TMI 182
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....ce Release Orders were issued in lieu of advance licences, which had been issued to M/s. Lupin Laboratories Pvt. Ltd. In terms of advance licence, M/s. Lupin Laboratories Pvt. Ltd. were entitled to import inter-alia, HMDS for export production. Further, in terms of Notification No. 30/97-Cus., dated 1-4-97, the materials imported against advance licence "with Actual User Condition in terms of Para 7.4 of the Export-Import Policy, 1997 - 2002" were exempt from the whole of duty of customs leviable thereon which is specified under First Schedule to the Customs Act, 1975 and "from the whole of additional duty leviable thereon under Section 3 of the Customs Tariff Act''. The appellant supplied HMDS to M/s. Lupin Laboratories without levying add....
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....port Policy. For this reason, the Revenue has held that the duty demand is fully justified. 3. We have perused the records and have considered the submissions made by both sides. Supplies in question are in terms of Export-Import Policy. The Customs Notifications have been issued to give effect to the Export-Import Policy. Therefore, both the provisions have to be seen as parallel and complementary and should be construed as to support each other. M/s. Lupin Laboratories Pvt. Ltd. is an exporter and they had obtained advance licences for the import of materials for their export production. Chapter 7 of Export-Import Policy 1997-02 relates to (Duty Exemption Scheme). General provisions in Para 7 relating to issue and terms of advance lice....
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....s the inputs for production of export goods, which are otherwise not excisable or not dutiable or not eligible for Modvat benefit, he may claim drawback in respect of the additional customs duty so paid at the time of export of goods in which such inputs have been used; (c) If the importer uses the inputs for manufacture and sale in the DTA of excisable goods, he may claim Modvat in respect of the additional customs duty so paid, immediately upon the said inputs entering his factory: (d) If the importer uses the inputs for manufacture and sale in the DTA of goods, which are not excisable or not dutiable or not eligible for Modvat benefit, he shall not be eligible to any rebat....
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.... a case, the licence shall be invalidated for direct import and a permission in the form of ARO shall be issued which will entitle the supplier to the benefits of deemed export. The transferee of the duty free licence shall also be eligible for ARO facility." 4. It is clear from the Para 7.3 and 7.4 that Advance Licences are of two types and imports under advance licences covered by Para 7.3 are exempt only from basic customs duty while import under licences issued in terms of Para 7.4 would be exempt from additional customs duty and anti-dumping duty as well and the conditions of both the licences are different. Notification No. 30/97-Cus relates to licences issued under Para 7.4 and these imports are exempt from additional duty of Cust....
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....Policy. It is their submission that when Notification is interpreted harmoniously with the different provisions of Para 7.3 and 7.4 of advance licence policy, it would be clear that in the appellant's case since the Advance Release Orders had been issued under Para 7.4, no additional duty of customs was leviable. They also point out that a contrary interpretation so as to levy additional customs duty only creates obstacles to an advance licence holder in the sourcing of import, without in any way benefiting the treasury. 5. We find merit in the contention of the assessee appellant. Its buyer was an advance licence holding export manufacturer. Advance Release Orders were issued to him so as to enable him to procure from Indian producers a....