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TMI Blog2004 (10) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. [Order per : Moheb Ali M., Member (T)]. The issue pertains to availment of Modvat credit on the strength of Bills of Entry wherein the importer availed of the benefit of Notification No. 34/97-Cus., dated 7-4-1997, which exempts duties of Customs (Basic and Additional Duty) when the duty leviable on the goods is debited to DEPB scrip. Under this scheme credit is given to an exporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... want of requisite balance the importer is required to discharge the balance duty in cash. During the relevant period Para 7.41 of the Import Policy prescribed that the additional Customs Duty paid in cash on inputs cleared under DEPB scheme can be adjusted as Modvat credit. Thus it is very clear that what can be taken as Modvat credit is what is paid by way of cash towards CVD and not what is debi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in view of these decisions the order of the Commissioner (Appeals) should be set aside. 4. The ld. SDR Shri Ajay Saxena argued that the Bills of Entry clearly show that the importer availed of the benefit of Notification No. 34/97-Cus. The appellant cannot take credit of duty debited in the pass book. The argument that it makes no difference whether such duty is paid by way of debit in the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent case no such duty has been paid by availing of the benefit of Notification No. 34/97. We observe that Para 7.41 of the Policy clearly says that Modvat credit can be taken only when CVD is discharged by way of cash. The Tribunal in the above cited cases observed that the department was standing on technicalities when it allows Modvat credit of duty paid in cash but does not allow what is paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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