2002 (3) TMI 694 - AT - Customs

Summary

Issues:
1. Confirmation of Customs and Additional Customs duty
2. Order of confiscation of goods
3. Denial of benefit of notification under DEEC, VABAL scheme
4. Reversal of Modvat credit
5. Eligibility for Amnesty Scheme

Confirmation of Customs and Additional Customs duty:
The appeal contested the confirmation of Customs and Additional Customs duty totaling Rs. 78,26,825 under Sections 111(m) and 111(o) of the Customs Act, 1962. The goods covered by two Bills of Entry had already been cleared and were not available for confiscation. Additionally, a penalty of Rs. 8 lakhs was imposed on the importers under Section 112 of the Customs Act, 1962. The appellant challenged the order on the grounds of non-compliance with conditions and denial of benefits under the DEEC, VABAL scheme.

Denial of benefit of notification under DEEC, VABAL scheme:
The notice issued pertained to imports under the DEEC, VABAL scheme, citing non-compliance with conditions for availing input stage credit benefits as per Notification No. 203/92-Cus. The appellants argued that they had reversed the Modvat credit, but discrepancies in the reversal amounts were noted. The Commissioner was directed to obtain a Certificate from Central Excise authorities to determine the adequacy of credit reversals and eligibility for the Amnesty Scheme.

Reversal of Modvat credit:
The appellants submitted evidence of Modvat credit reversals, but discrepancies in the amount reversed were highlighted during the proceedings. The delay in determining the exact quantum of credit to be reversed led to uncertainties regarding eligibility for the Amnesty Scheme. The Tribunal emphasized the need for a Cost Accountant to ascertain the correct amount of credit reversal before making a conclusive decision on eligibility for the scheme.

Eligibility for Amnesty Scheme:
The Tribunal acknowledged the arguments presented by the Senior Advocate regarding the uncertainty surrounding the quantum of Modvat credit that needed to be reversed. As the determination of the reversed credit amount was pending, the Tribunal set aside the order and remanded the matter back to the Commissioner. The Commissioner was directed to expedite the verification of Credit Reversal Quantum by Central Excise officers, obtain the necessary Certificate, and then adjudicate on the Customs Show Cause Notice after hearing the appellants.

In conclusion, the appeals were disposed of with the direction for further proceedings based on the verification of credit reversals and eligibility for the Amnesty Scheme.