Full Judgment
2. The order of the Commissioner holds that the appellant is liable to pay duty on the goods imported by International Dyestuff Industries on an import licence which was issued to the appellant and transferred by it directly to International Dyestuff Industries. The Commissioner has held that the benefit of the exemption claimed and granted is not available for the reason that modvat credit has been availed of in the manufacture of goods which were exported as a result of the import licence was issued.
3. The Commissioner proceeds on the footing that "the licence has been issued to the present notice and the imports have been effected by him." This is in fact seen to be incorrect. The two bills of entry referred to in the show cause notice are seen to have been filed by International Dyestuff Industries and not the appellant. This fact though made known to the Commissioner in its reply to the notice has not been considered by him.
4. In a series of the decisions, the Tribunal has emphasised that it is the person who imports the goods who is liable to pay duty on them, in the event that the exemption claimed by him is not available, and there is no warrant in law to demand duty from a person who was issued the import licence which was made use of to effect the import. See Minar Enterprises and Ors. v. CC appeal C/442/2001. The demand for duty from the licensee, who was not the importer is hence not justified.