2017 (6) TMI 316 - AT - Central Excise

CENVAT credit of amount of CVD paid through DEPB - whether the CENVAT Credit of the additional custom duty debited through DEPB against import licenses issued under earlier policy in respect of the bills of entries pertaining to year 2003 can be allowed in December, 2004 under the new Foreign Trade Policy? - Held that - the Board Circular dt. 21.10.2004 has clarified that the said facility would be available only in respect of the licences issued under the new Foreign Trade Policy. It was also clarified in the said circular that licence under the previous policy would be governed by the provisions of earlier policy. The penalty of ₹ 10,000/- has been rightly imposed u/r 15(1) of the CCR, 2004 by correctly interpreting the said Rule. Appeal dismissed - decided against appellant.

Summary

Issues:
1. Failure of the appellant to appear for the hearing despite multiple chances given.
2. Admissibility of Cenvat Credit for additional custom duty debited through DEPB against import licenses issued under the earlier policy.
3. Interpretation of legal provisions regarding Cenvat Credit eligibility under the new Foreign Trade Policy.

Analysis:
1. The judgment highlights the appellant's repeated failure to appear for the hearing despite multiple opportunities and specific directions from the tribunal. The tribunal noted the lack of interest from the appellant's side in prosecuting their case, leading to the decision to proceed with the help of the Revenue's representative due to the appellant's non-representation.

2. The issue of admissibility of Cenvat Credit for additional custom duty debited through DEPB against import licenses issued under the earlier policy was thoroughly examined. The tribunal considered the legal provisions, including Notification No. 96/2004-Cus and Circular No. 59/2004-Cus, to determine whether the Cenvat Credit claimed by the appellant was valid. The tribunal referred to specific case laws to support the Revenue's argument regarding the inadmissibility of Cenvat Credit under the circumstances presented.

3. The judgment delves into the interpretation of legal provisions concerning Cenvat Credit eligibility under the new Foreign Trade Policy. The tribunal analyzed the Notification No. 96/2004-Cus and Circular No. 59/2004-Cus to establish that the facility of Cenvat Credit for additional duty paid through DEPB was only available for licenses issued under the new Foreign Trade Policy. The tribunal upheld the Ld. Commissioner (Appeals)'s order, emphasizing the legal sustainability of denying the appellant's contentions regarding the applicability of Circulars and Cenvat Credit Rules.

4. The penalty imposed under Rule 15(1) of the Cenvat Credit Rules, 2004, amounting to ?10,000, was deemed appropriate and rightly imposed by correctly interpreting the said Rule. The tribunal found no infirmity in the Ld. Commissioner (Appeals)'s order and upheld the decision, ultimately dismissing the appeal filed by the appellant.

This comprehensive analysis of the judgment provides a detailed overview of the issues addressed, the legal arguments presented, and the tribunal's decision based on the interpretation of relevant legal provisions and precedents cited.