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TMI Blog2013 (6) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms when duty leviable on goods debited to DEPB. As per para 4.3.5 of Exim Policy 2002-07 specifically provides that in case where the Additional Customs duty is adjusted from DEPB no benefit of Cenvat Credit or duty drawback is eligible. In view of the clear provisions of the Exim Policy and in view of the admitted fact no infirmity in the impugned order whereby the demand is confirmed after denying the credit along with interest and penalty. In respect of the time bar, the authorized signatory in his statement stated that the appellants were aware of the fact that as per the Exim Policy no credit is admissible. Further, the appellant has not disclosed the fact that duty has been paid by making debit in the DEPB while denying cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 16 of the Cenvat Credit Rules, 2004. 5. The demand is confirmed after denying Cenvat Credit on inputs imported under the DEPB Scheme for which the Additional Duty of Customs (CVD) was adjusted through DEPB and not paid by cash. 6. The appellant submitted that the adjustment through DEPB is also payment of duty. Hence the credit cannot be denied and relied upon the decision of the Hon'ble Madras High Court in the case of Tanfac Industries Ltd. vs Assistant Commissioner of Central Excise reported in 2009 (240) ELT 341 (Mad.). The contention of the appellant is that the Hon'ble Madras High Court after taking into consideration the Boards's Circular held that debit of any amount under the DEPB Scheme is a mode of payment of duty on the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per para 4.3 of the Exim Policy 2002-07 where the Additional Duty of Customs is not paid by cash, no benefit of Cenvat Credit is admissible. Hence the impugned order is rightly passed. 11. In this case the issue is whether mere debit is sufficient for eligible of credit on the strength of Bill of Entry where the appellant availed the benefit of Notification No. 45/02-Cus dated 22.4.2002 which exempts the duty of Customs both basic and additional when the duty leviable is debited in the DEPB pass book. 12. The appellant relied upon the decision of the Hon'ble Madras High Court judgment in the case of Tanfac Industries Ltd supra. The issue before the Hon'ble Madras High Court was whether the assessee is liable to pay interest under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by adjusting the duty amount from DEPB and as per the Exim Policy credit is not admissible in respect of such adjustment. Further we find that there authorized signatory in his statement stated that the appellants were aware of the fact that as per the Exim Policy no credit is admissible. Further, the appellant has not disclosed the fact that duty has been paid by making debit in the DEPB while denying credit in the monthly return. We find no infirmity in the order whereby demand is confirmed by invoking the extended period of limitation. 16. In respect of penalty on the managing Director, the contention of the appellant is that the appellant acted as per the advice of their consultant and as per the advice of their consultant and as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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