9911796707
TMI Blog2010 (5) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... ack. Demand regarding ineligible drawback is sustainable. - C/1182/2008-MUM - A/196/2010-WZB/C-IV/SMB - Dated:- 7-5-2010 - Shri Ashok Jindal, Member (J) Shri Prakasham P.P., Shipping Executive, for the Appellant. Shri T. Tiju, SDR, for the Respondent. [Order]. - The appellant has filed this appeal against the order to recover the ineligible drawback claim along with the interest passed by the Commissioner of Customs (Export). 2. The facts of the case are that on 14-1-2004 the officers of Customs Preventive Unit visited the factory of the appellant and verified the documents relating to purchase of yarn and the export of garments. During the course of investigation, it was revealed that the appellant is registered with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards the excise duty along with interest involved on the cotton yarn, procured without payment of duty under Rule 19(2) which were utilised for the manufacture of garments and exported under duty drawback scheme. Further, they had reversed CENVAT credit amounting to Rs. 98,764/- on account of CENVAT credit availed against raw material used by them in the manufacture of export goods for which duty drawback bills were filed. It was found that the appellant has availed ineligible drawback in respect of exports made by them on account of duty free yarn procured under Rule 19(2). A show-cause notice was issued and the same was adjudicated and was ordered to recover ineligible drawback scheme and received on account of subject exports made amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has the choice of claiming credit or reversing the same." 6. Heard both sides. 7. In this case, I find that the appellant has availed CENVAT credit wrongly on the duty paid inputs used in the manufacture and claimed duty drawback on the same. Further, the appellant has procured certain inputs without paying Central Excise duty under duty drawback claim and certain part of goods have been diverted into domestic market. Further the reliance of the appellant on Chandrapur Magnet Wires (P) Ltd. case wherein the Apex Court has held that reversal of CENVAT credit amounts non-availment of CENVAT credit. In that case, although the credit was availed but was not utilised but in this case the appellant on realising that they have commi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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