TaxTMI 
TaxTMI 
2005 (8) TMI 247
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....ed are strictly in accordance with the Standard Input-Output Norms (hereinafter referred to as SION); (ii) Copy of the Purchase Order of the overseas buyers had been submitted to DGFT and DGFT did not seek additional information which shows that DGFT was satisfied; (iii) The imported items were required for the manufacture of final products and the final products have actually been exported and in conformity with the Advance Licence/DEEC Book; (iv) They have fulfilled the EO in terms of value, quantity, description, quality, technical characteristics, etc. (v) Part (E) of the DEEC Book require helical coil springs to be exported and there is no dispute that the same item has been exported; (vi) In respect of 18 Advance Licences, Export Obligation Discharge Certificate (hereinafter referred to as EODC) has been obtained and in respect of the remaining six, EODC could not be obtained because of the case registered; (vii) SSS have exported the goods valued at more than Rs. 6.16 Crores as against the requirement of Rs. 5.78 Crores; (viii) No portion of the imported exempt materials have been sold/transferred or disposed of in any other manner; (ix) Most of the materials....
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....act that the actual user is required to give the technical specifications, characteristics and details in his declaration itself. So it is not sufficient, if the description alone tallies with SION. If that was the case, there was no need for SSS to give declaration in detail, why detail, no declaration would have been required at all since SION is in public domain. Unfortunately, both the DGFT and Customs Deptt. have accepted incomplete technical specifications and details and also have failed to compare the export product with the raw material that has been imported. Hence, the investigation by DRI and the case. 36. Admittedly, there are a number of types of springs made out of spring steel wire of different diameters. Spring steel wire of one diameter cannot be used to manufacture helical coil springs of another diameter since it is an admitted fact that no drawing of wire is done by SSS. Once this is established, it is quite clear that the raw-material diameter should tally with the diameter of the helical coil spring and then only the actual use of the imported material in the finished product exported can be established. Whether the licence is for replenishment of the raw-m....
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....ollowed the ratio of Zenith Tin Works v. CC, Bombay - 1997 (93) E.L.T. A176 (S.C.) and that of Garment Craft v. CC - 2001 (130) E.L.T. A271 (S.C.) which was in terms of the earlier definition of raw materials in the Policy and has failed to follow the judgments rendered subsequently under the later Policy under the definition of "Raw materials" which are required for manufacture of the resultant product. He submitted that the ratio of the judgment rendered by the Apex Court in the case of Oblum Electrical Industries Pvt. Ltd. v. CC - 1997 (94) E.L.T. 449 (S.C.) and that of the Tribunal in the case of Jay Engineering Works Ltd. v. CC -2003 (162) E.L.T. 680 (Tribunal) apply to the facts of this case. He further submitted that in terms of the later definition, the exact correlation need not be between the export product and the imported raw materials as held by the Tribunal in the following cases : (a) Siddartha Tubes Ltd. v. CC, Mumbai - 2001 (137) E.L.T. 269 (b) Kitply Industries Ltd. v. CC, Mumbai - 2003 (156) E.L.T. 1021 (c) ITC Ltd. v. CC, Chennai - 2003 (153) E.L.T. 366 4. He further submitted that the proof of actual use is not a condition attached to the exemption notif....
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....Jain v. CC, Calcutta - 2003 (162) E.L.T. 733 (T) (b) Pushpam Pharmaceuticals Co. v. CCE, Bombay - 1995 (78) E.L.T. 401 (S.C.) (c) Tamil Nadu Housing Board v. CCE, Madras - 1994 (74) E.L.T. 9 (S.C.). 9. The learned SDR defended the order and filed detailed parawise comments and relied on the judgment of the Tribunal rendered in the case of Zenith Tin Works [1995 (75) E.L.T. 865 (Tribunal)], which has been upheld by the Apex Court. He contended that merely because the DGFT and Customs Authorities have accepted the exports, that by itself is no ground to grant the assessee the benefit of the scheme as they have imported raw material of different dimensions which cannot be considered as a replenishment item and, therefore, the denial of benefit is justified. 10. On a careful consideration of the submissions made, it is very clear from the record that the definition of the word 'Materials' and 'Raw materials' as in the Notification Nos. 116/88-Cus, dated 30-3-1988 and 159/90-Cus, dated 30-3-1990 has been amended in the subsequent Notification of 204/92-Cus, dated 19-5-1992 because on 30-3-1988, the definition of "materials" meant "Goods which are raw materials, com....
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....alloy, it is a material required for the manufacture of ceiling fans. It has been held in dealing with the Revenue's contention that the use of the imported raw materials is the option of the importer. He can either use it in the export product or import it and keep it in the factory, manufacture the export product using inputs procured from other sources, fulfil the export obligation and, thereafter, dispose off the raw materials imported as per Standard Input/Output Norms. It has been held that if the Customs authorities take a view that certain materials are not required for the manufacture, contrary to the view of the Standard Input/Output Norms of the EXIM Policy, it would lead to disharmonious situation, as while import licences granted will entitle the import under DEEC Scheme while the clearances of the same into the country would not be in conformity with the DEEC Scheme. It has been held that the EXIM Policy of the Government has to be harmoniously interpreted and no discordant notes be made. It has been further held that if Input/Output Norms permit, clearance as per Policy have to be allowed by the Customs. If the norms are not correct, the norms could be changed no....