9911796707
TMI Blog1999 (9) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... . Patwari, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. The application is for waiver of deposit of duty of Rs. 4.67 crores and penalty of Rs. 50 lakhs. 2. The applicant utilized in the manufacture of its final product, cleared for home consumption on payment of duty, inputs which had been received by it under a Customs exemption notification relating to DEEC scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l undertaking executed at the time of import under DEEC of the goods has been discharged, thus showing that the inputs in question have been utilised in the manufacture of the goods exported and thus could not have been used in the manufacture of these goods. 4. The Departmental Representative adopts the reasoning contained in the Commissioner s order. This is that Rule 57A refers to inputs as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y from the credit taken of the duty paid on the dutiable inputs and partly out of the balance in the personal ledger account. 6. In that situation, we are unable to see prima facie any ground on the levy of the duty. It is a well settled position that there is no direct correlation between input and finished product in the Modvat scheme in the sense that the total amount of credit accumulated fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice were correct, the demand for duty would be one-forth of that which has been confirmed, this being the proportion of the duty free input of the total inputs used, on which duty has been demanded. 7. In these circumstances, we are of the view that it would not be correct to ask the applicant to deposit the duty and we waive such deposit and stay their recovery. - - TaxTMI - TMITax - Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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