2007 (11) TMI 226

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..... ; Subsequently, the appellants were issued two Show Cause Notices raising the demand of duty against them on the ground that the condition of Notification No. 203/92 as regards non-availment of Modvat Credit in respect of the input used in their exported product do not stands fulfilled.  The said demands were confirmed against the appellant and penalties imposed. Hence, the present appeal. 2. After hearing both sides duly represented by Shri J.C. Patel, learned advocate for appearing for the appellant and Dr.M.K. Rajak, learned SDR appearing for the Revenue, we find that the appellant made exports, in terms of Notification No.203/92-Cus dt.19.5.92 and was given advance licenses for duty free imports. On fulfillment of export obligatio .....

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..... at the time of export had  made declaration that no modvat credit stands availed by them. To the same effect was the declaration by the merchant manufacturer. Subsequent enquiries conducted by the revenue are in the nature of a report dated 22nd August, 2000 given by the Superintendent which  also admits that there is nothing on record to correlate the taking of the modvat credit by the merchant manufacturer with the involved shipping bills and advance licenses. As such, it has been strongly argued  that there was no  evidence to correlate  taking of  modvat credit availed in respect of inputs used in the exported goods. 4. We are fully agree with the larned advocate that the importer being M/s Verma Chemical .....

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..... herefore, it is not possible to ascertain whether the said exports were made against obligations of impugned advance licences.  However, reversal of Modvat credit in all three instances was done and details are as per annexure to this letter. Since the copies of relevant Shipping bills and advance licences are not available with the concerned Range office, the supporting manufacturer is being asked to supply a copy of the document and further report will be sent to you in due course of time." As is clear from the above paragraphs, the Supdtt. himself is not sure about the co-relation between the relevant AR-4 under the cover of which exports have been made and the Modvat Credit availed by the merchant manufacturer.  In any case, .....

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