Facts
The appellant, an advance licence holder, procured intermediate goods without payment of duty from another advance licence holder under Notification No. 44/2001-C.E (N.T) dated 26.06.2001 as amended by 23/2009 -C.E (N.T) dated 25.09.2009.
The manufactured goods out of the same was cleared to ICB against Notification No. 108/95-CE dated 28.08.95.
Dispute
The revenue disputed that the duty free procurement of intermediate goods under Notification No. 44/2001-C.E (N.T) dated 26.06.2001 required the final manufactured goods to be physically exported out of India and it does not cover deemed exports under Para 8.3 (C) of FTP.
Tribunal
Honourable CESTAT held the following :
The removal of intermediate goods without payment of duty, for manufacture and deemed export in terms of Para 8.3 (C) of policy is allowed.
It also held that a proviso to a Notification has to be read harmoniously, otherwise, the proviso inserted therein by amending notification would be nugatory and meaningless.
The litigation of M/s Techfab India Industries Limited was handled by Shri Anand Mishra, Advocate.
The entire order is reproduced herein below.
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