COMMISSIONER OF CUSTOMS (EP) Vs. GALAXY SURFACTANTS LTD.

JUDGEMENT

(1.) Both these Appeals arise out of a common order dtd. 24/7/2006 passed by the Customs Excise and Service Tax Appellate Tribunal (for short "the CESTAT"), West Zonal Bench at Mumbai.

(2.) M/s. Galaxy Surfactants Ltd., the Respondent herein, is a company engaged in the manufacture and export of Surfactants, Speciality Chemicals such as Sodium Lauryl Sulphate (SLS) and Sodium Lauryl Ether Sulphate (SLES), which chemicals are used as raw materials for the manufacture of toothpaste, shampoo etc. The Respondent statedly has one manufacturing unit at Taloja and five manufacturing units at Tarapur. The Respondent has a unit at V-23, MIDC at Taloja where the Respondent manufactures SLS and SLES. One of the major and important raw material required for manufacture of SLS and SLES is Lauryl alcohol. The Respondent, it is submitted, has been sourcing Lauryl alcohol either through indigenous purchase on payment of appropriate excise duty or it is imported under advance licence without payment of duty or it is imported on payment of customs duty. In the present case, the Respondent had obtained five advance licences with actual user condition.

(3.) Under General Exemption no. 81 pursuant to Notification No. 30/97-CUS dtd. 1/4/1997 as amended by Notifications upto No. 63/2004-CUS dtd. 14/5/2004 (the "said notification"), materials imported into India against an advance licence with actual user condition in terms of paragraph 7.4 of the Export and Import Policy 1997-2002 (for short the "EXIM Policy") would be exempt from the whole of the duty of customs leviable thereon.