Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Customs Act non-fulfillment of export obligation under the licence 1962 - s. 25 - Exemption under Notification No. 3011997 - Claim of- Import of goods against advance licence - However |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | .Customs Act, 1962 - s. 25 - Exemption underNotification No. 3011997 - Claim of- Import of goods againstadvance licence - However, non-fulfillment of exportobligation under the licence - No exports effected byexporting tho~e goods so manufactured from the raw materialthat was imported duty free - Demand of duty by Revenue -Assessee's case that it had arranged for third party export,thus fulfilled its obligation and was entitled to duty free imports- Said demand confirmed - However, tribunal set aside thesame holding that the Director General of Foreign Trade hadamended the licence permitting such export through thirdparty, it amounted to fulfilling the export obligations - Onappeal, held: Since the conditions of the exemptionnotification are not fulfilled and law requires strict complianceof the exemption notification, assessee becomes liable topay the import duty which was payable, but for the benefit ofexemption Notification No 3011997, which was obtained bythe assessee - Purport of the exemption notification is toadvance the objectives of the EXIM Policy - When DGFTitself accepted the benefits of the assessee and carried outthe amendment in the import licence and further that theassessee could make the exports on the basis of theamendment,· albeit through third party, such person shouldnot be left high and dry- Thus, necessary amendments areneeded in such notifications making appropriate provisionsto meet these types of eventualities - As regards charge of · interest, as per the bond the assessee agreed to pay interest@24% pa-In the peculiar faCts of the case, rate of interestreduced from 24% pa to 9% pa. - Order passed by thetribunal set aside.. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2015 INSC 1008 |
Petitioner | Commissioner Of Customs, Hyderabad |
Respondent | M/s. Pennar Industries Ltd. &anr. |
SCR | [2015] 8 S.C.R. 728 |
Judgement Date | 2015-07-31 |
Case Number | 4444 |
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