2008 (9) TMI 752

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..... SDR, for the Respondent. [Order per : K.K. Agarwal, Member (T)]. The appellants in this case who were holders of Value Based Advance Licence imported certain goods and availed exemption under Notification 203/92, dated 19-5-1992. Condition v(a) of this Notification required that no inputs stage credit under Rules 56A or 57A of the Central Excise Rules, 1944 should have been utilized in t .....

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..... n that glass vials are not inputs and therefore credit of duty paid on them could be availed under Notification No. 203/92. They have since reversed the credit along with interest and therefore as per the Amnesty Scheme, no penalty can be imposed nor the goods can be confiscated. This plea was rejected by the Commissioner, who held that the reversal of the credit was done after the Amnesty Scheme .....

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..... uts was taken and it was for the department to discharge this burden and he referred to several Tribunal decisions in this regard. Lastly it was submitted that Modvat credit could be reversed pursuant to Amnesty Scheme and in support thereof he referred to the decision of Tribunal in the case of CCE v. A. Shankar Rao - 2002 (149) E.L.T. 387 (Tri. - Mum) where it was held that Modvat credit availed .....

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..... nsidered as input, for which they referred to the decision of the Madras High Court in the case of Ponds (India) Ltd. (cited supra) and Tribunal s decision in the case Ashwin Vanaspati Inds. (Pvt.) Ltd. - 1994 (70) E.L.T. 754 (Tri.). We further note that Hon ble Madras High Court had itself considered the container as intermediate product and the credit of duty paid on the inputs used in the manuf .....

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..... eal. The other decisions do not bring out the fact that the amount was paid after the Amnesty Scheme was over or earlier in Shashun Drugs case, part of amount was paid before Amnesty Scheme which is not so in present case. In view of this, we find no merits in the appeal. The demand of duty is, therefore, upheld. However, since the amount of credit taken was just Rs. 319/-, we reduce the penalty f .....

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