1998 (8) TMI 165 - AT - Central Excise

Summary

Issues involved:
1. Availment of double benefit on inputs for products exported under Value Based Advance Licences.
2. Verification of Modvat credit quantum for exports under the Value Based Advance Licence Scheme.

Issue 1: Availment of double benefit on inputs for products exported under Value Based Advance Licences:
The appellants were required to deposit duty and penalty due to the violation of conditions under Notification No. 203/92-Customs for availing double benefit. They voluntarily debited a sum in their account as per the prescribed formula by the Government. The main contention was the need for detailed verification of the correct Modvat credit to be expunged based on actual data. The Assistant Commissioner of Central Excise had intimated the Customs House about the exports made under specified AR 4s, but actual verification was pending due to the unavailability of documentary evidence. The appellants provided details of inputs used for export products, but no further report was received, leading to the issuance of the impugned order-in-original.

Issue 2: Verification of Modvat credit quantum for exports under the Value Based Advance Licence Scheme:
The appellant's consultant argued that the order-in-original lacked specificity as it did not undergo the prescribed actual verification. They requested a remand for proper verification by the Central Excise department. The Revenue representative opposed, citing the lapse of time since the last communication. The Tribunal noted that the matter primarily involved factual verification based on existing data with the Assistant Commissioner of Central Excise. The appellants had already reversed certain amounts voluntarily. The Tribunal emphasized the need for proper verification as per the Government Circular dated 26-6-1997 for exports made before 31-1-1997. It was highlighted that the verification on an actual basis was pending due to the lack of detailed documentation readily available. The Tribunal directed the Assistant Commissioner to complete the verification and issue the necessary certificate for legal processing of duty exemptions for exports under the Value Based Advance Licence Scheme.

In conclusion, the Tribunal granted a waiver of the remaining duty and penalty, stayed the recovery, and remanded the matter for de novo consideration. The Assistant Commissioner of Central Excise was directed to promptly verify the data provided by the appellants and issue the required certificate. The Customs authorities were instructed to process the information contained in the certificate for further consideration. The appeal succeeded by way of remand, emphasizing the importance of timely completion of the entire procedure to serve the interests of both Revenue and the appellants.