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6. The appellants had pleaded that there was no requirement under the Import and Export Policy 1992-97 that the material actually imported should be used in the goods exported. There could be a case of prior import of raw materials and there could be a case of post-import of the raw materials after the notified goods have already been exported.

Under para-47 of the Export & Import Policy 1992-97, under the Duty Exemption Scheme, import of raw materials, intermediates, components, consumable, parts, accessories, mandatory spares, etc. required for the product to be exported may be permitted duty free for processing and export. In para-66 of the said Policy, it was made clear that the exports could be made in anticipation of issue of advance licence. It was provided that exports/supplies made from the date of receipt of an application under the Duty Exemption scheme by the licensing authority were to be accepted towards discharge of export obligation. Thus, it is clear that in such case, there could no exact cor-relation between the exports already made and the imports of materials made subsequently. These provisions are in tune with the objectives of the above Policy as contained in para-6 of the said Policy.