- (1.) In this appeal under Section 130-E of the Customs Act, 1962 the order of CEGAT, North Regional Bench, New Delhi, upholding the demand of customs duty of Rs. 9,34,514 with interest @ 18% and penalty of Rs. 40,000 has been impugned.
(2.) The appellant applied for Import-Export Passbook Licence for the import of brass scrap of 89.744 MTs of the CIF value of Rs. 13,06,974 for the purpose of exporting the resultant product manufactured out of it, namely, brass artwares (handicrafts) of the FOB value of Rs. 32,67,436. Under the column 'quantity to be exported' the appellant mentioned 'as per value'. Serial No. and appendix of import policy was mentioned as 'appendix 25, H.1'. In the declaration, it was made clear that the quantities and value of the items sought for import are actually required for the manufacture of the export product.
(3.) The Assistant Chief Controller of the Imports and Exports granted the licence on 7-6-1988 and issued a passbook. The details relating to the description of goods, the quantity and value of brass scrap to be imported and the value of the exports are mentioned in the licence as per the application. In column 6 of the licence, the limiting factor for purposes of the clearance through Customs is stated to be - 'quantity and value both'. In condition 6 appended to the licence, it is specified "the goods permitted for import against this licence will be eligible for exemption from Customs duties subject to the conditions specified in the relevant notification of the Government of India, Department of Revenue".;