2006 (1) TMI 380

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..... aking Modvat credit. If Modvat credit had been taken, the Department would be entitled to deny the benefit of the exemption to the imported goods for the reason that the condition embodied in the notification has been violated. But it does not follow that the Modvat credit can be denied. The Tribunal also rejected the contention raised by the DR that this point was not taken up by the assessee before the Commissioner on the ground that the point is a basic and fundamental one and should have occurred to the adjudicating authority, without being pointed out by the assessee. Revenue cannot compel the assessee to fulfil the conditions of the notification by coercing them to reverse the credit. If the credit has not been reversed, the same woul .....

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..... versed on or before 15th July, 1995. In view of the above directive, appellants jurisdictional Central Excise Authorities made the appellant reverse the credit amount of Rs. 1,82,88,375/- (Rupees one crore eighty-two lakhs eighty-eight thousand three hundred seventy-five only). However the appellant subsequently realised that the credit involved in respect of exports made under VBAL Scheme was only to the extent of Rs. 99,15,456/- (Rupees Ninety-nine Lakhs Fifteen Thousand Four Hundred Fifty-six only) and they have reversed an extra amount of Rs. 83,72,919/- (Rupees Eighty-three Lakhs Seventy-two Thousand Nine Hundred Nineteen only) which was in respect of exports made under QBAL and did not require any reversal. Accordingly, after writing .....

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..... ersed by the authorities. The reversal of the same was one of the conditions for availing the benefit of Notification No. 203/92-Cus. and if the credit has been availed, it is the exemption which could be denied. For the above preposition he places reliance on the Tribunal s decision in the case of Steelco Gujarat v. CCE, Vadodara [2000 (122) E.L.T. 381 (Tri.)]. 4. After hearing the ld. DR, Shri S.S. Bhagat, we find that the Tribunal in the above referred case has observed that Notification No. 203/92-Cus. grants exemption from Customs duty on imported goods subject to the fulfilment of various conditions. One such conditions referred to is taking Modvat credit. If Modvat credit had been taken, the Department would be entitled to deny the b .....

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