The central legal point established in the judgment is the entitlement of the appellant to exemption under the mentioned notifications, based on the interpretation of the relevant provisions and the implications of previous judgments.

ORDER :

Ashok Bhan, J.

This is a Statutory Appeal filed under Section 130E of the Customs Act, 1962 (for short 'the Act') against the Final Order bearing No. C- 1/377/WZB/2001 dated 12.2.2001 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, Mumbai (hereinafter referred to as 'the Tribunal') in Appeal No. C/107/94-Bom. Whereby the Tribunal has rejected the appeal filed by the appellant-assessee and confirmed the demand of duty imposed by the Collector of Customs.

2. Appellant is a company registered under the Companies Act, 1956 and is manufacturer of Aromatic Chemicals and Natural Essential Oils and is a Trading House. Appellant is the exporter of various Dyes and Dye Intermediate etc. Between May, 1993 and October, 1993 the appellant imported various Aromatic Chemicals and Natural Essential Oils against advance licences granted to it by the Licensing Authorities i.e. Joint Chief Controller of Import and Export and Joint Director General of Foreign Trade.

3. All these licenses were quantity based advance licenses issued under the Duty Exemption Scheme contained in Chapter XIX of the Import and Export Policy, 1993 and Chapter 7 of the Import and Export Policy 1992-97 in respect of the export products (i) Flavoured Shivalik Mentha Base; (ii) Methyl Hydroxy; and (iii) Flavoured Aromatic Menthol Base.

4. Under the Scheme, quantity based advance licences are issued by the Licensing Authority on the recommendation of a Regional Advance Licensing Committee who then scrutinizes the applications and decides the quantity and value of goods that can be imported against specified quantity and value of any export product.

5. A facility is given to the Importer either to first import and utilise the imported goods in the manufacture of the export product or to export the goods after the application for the licence is made. In the later case, the exports can be used in discharging the export obligation specified in the licence. After the export obligation is completed, export proceeds realised and LUT redeemed, the imported goods became freely transferable.

6. Prior to 30th June, 1962, the provisions of the Hand Book of Procedures 1992-1997 issued on 1.5.1992 required that the first licence holder has to co- relate the goods imported with those utilised in the export product. After the deletion of the requirement of co-relation, the first licence holder became free to import any goods covered by the licence issued.

7. When the appellant applied for the clearance of the goods by filing Bills of Entry and complying with all formalities, the Customs Authorities did not permit clearance of the goods saying that they were investigating the matter. By an order of provisional assessment passed by the Collector of Customs on 12.7.1993 and communicated to the appellant by the Assistant Collector of Customs vide order dated 15.7.1993, the appellant could clear the goods against submitting a P.D. Bond for the full duty amount involved and 25% Bank Guarantee. The appellant promptly complied with this order. Further provisional assessment order dated 4.8.1993 was passed by the Assistant Collector of Customs and it was alleged that in view of the fact that the Joint Director General of Foreign Trade has issued a show cause notice for cancellation of the advance licences issued to the appellant, the respondent directed that the goods imported would be allowed clearance on payment of appropriate duty applicable in each case. This order was challenged by the appellant by filing Writ Petition in the Bombay High Court. The High Court while granting leave and pending the final disposal of the said petition allowed, clearance of the two consignments imported by the appellant on the appellant's furnishing P.D. Bond for the duty amount involved and Bank Guarantee for 25% of the duty amount, which the appellant had already furnished in pursuance to the order of Collector of Customs dated 15.7.1993.

8. The appellant having completed their export obligatio