TaxTMI 
TaxTMI 
2005 (8) TMI 247
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.... description of the items imported and the product exported 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 ex....
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....equired for the manufacture. But, it is not deniable that the goods have been imported on the basis of actual user condition. The very fact 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....
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....t, products and their packings, or mandatory spares to be exported along with the resultant products". He pointed out that the Commissioner has followed 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....
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....ving their correct classification as per the Advance Licence and claiming the benefit of Exemption Notification and it would not amount to mis-declaration or mis-statement and hence, extended period cannot be invoked. He relied on the following judgments: (a) G.C. 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&#....
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....re of the export product" and have clarified that the Notification places no restrictions on actual use. It clarifies that once a specified item has a standard input (aluminium alloy) for manufacture of ceiling fans and an Advance Licence has been issued for the import of the said aluminium 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 bee....