2025-VIL-2077-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs - Target Plus Scheme, Actual User, Despatch of imported material under the scrip to job worker for manufacture of final product - Appellant had obtained a duty credit certificate under the Target Plus Scheme and utilized it to import 'PTC Thermistors'. The appellant then sent the imported goods to job-worker on a job work basis for manufacturing the electronic mosquito repellent machines - Department alleged that the appellant had violated the conditions of Customs Notification No. 73/2006, which exempted goods imported against a duty credit certificate under the Target Plus Scheme, by sending the imported goods to a job worker instead of using them for its own manufacturing - Whether the appellant's act of sending the imported goods to a job worker for manufacturing the final products is a violation of the conditions of Customs Notification No. 73/2006 – HELD - The dispatch of the imported goods by the appellant to the job worker for manufacture is not violative of the condition (3) of the exemption notification No.73/2006. The Tribunal in the decision in M/s. Silver Line Plastpack Pvt. Ltd. v. CCE & ST, Bhavnagar, held that "own use" also means "use by utilizing the facilities of the job worker," and the Customs notification does not prohibit the processing of the imported goods into finished final goods by the job worker - The condition (3) of the notification does not place any embargo on the manufacturer-importer utilizing the services of a job worker to manufacture the products using the imported goods – Further, the Public Notice No.113 (RE-2007)/2004-09 clarified that the beneficiary (Manufacturer Exporter or Merchant Exporter) can utilize the full value of the duty credit scrip for its "own use," and job workers can be used for the conversion of imports permitted under the scheme into any possible resultant products - the appellant's act of sending the imported goods to a job worker for manufacturing the final products is not a violation of the conditions of Customs Notification No. 73/2006 – The impugned order is set aside and the appeal is allowed
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