BINANI CEMENT LTD. AND ORS. Vs. CC

JUDGEMENT

(1.) M /s. Binani Cement Ltd. is engaged in the manufacture of clinker and cement falling under chapter 25 of the Central Excise Tariff Act, 1985. The appellant imports steam coal required for its manufacturing activities from time to time. The imported goods can be cleared on payment of applicable customs duties or exemption under Notification No. 34/97 -Cus. Dt. 7/4/1997 can be availed, which requires the importer to produce DEPB licence. The appellants utilized two DEPB licences No. 0910004790 and 0910004831 for import of steam coal cleared under bills of entry No. 4647 & 4648 dt. 12/1/2001 through Customs House, Kandla. They had purchased these two licences in the local market and the licences were originally obtained by M/s. Sri Vishnu Merchants. These licences were transferred to Kandla by issue of Transfer Release Advice issued by Supdt. Of Customs , ICD, Hyderabad, which facilitated utilization of licences by the appellants.

(2.) The Jt. Director General of Foreign Trade, Hyderabad, the licensing authority cancelled both the DEPB licences ab initio vide order dt. 13/5/2002 and the IEC No. of M/s. Sri Vishnu Merchants was also suspended on 13/5/2002 by the JDGFT.

(3.) The grounds of appeal put forth by M/s. Binani Cement Ltd. are briefly detailed below: