S.E. INTERNATIONAL Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) THE dispute in the present appeal revolves around the benefit of Notification No. 77/80 -Cus dt. 17 -4 -1980, which grants exemption from duties for goods when imported into India for production of goods for export by units situated in Khandla Free Trade Zone, subject to conditions mentioned therein. During the period 1981 to 1985, appellant imported various goods in the nature of inputs as well as components/parts etc. without payment of duty and on execution of bond. According to the appellant, number of such components/parts imported by them were found to be defective and as such could not be put to use.

(2.) THEY were issued a show cause notice on 20 -9 -90 / 5 -10 -90 demanding customs duty on the said goods and proposing to confiscate the same on the ground that the appellant has not been able to fulfill conditions of Notification No. 77/80, which was for use of the goods within a period of one year from the date of importation or within the extended period that may be allowed by the Collector of Customs.

(3.) THE appellant contended before the authorities below that the parts were found defective and as such could not be put to use. However, since the said goods were still lying with them in the factory, duty on the same should be remitted under clause 9 of the Notification. They also specifically pleaded before the authorities that they have fulfilled their entire export obligation.