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TMI Blog2017 (6) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... the said circular that licence under the previous policy would be governed by the provisions of earlier policy. The penalty of 10,000/- has been rightly imposed u/r 15(1) of the CCR, 2004 by correctly interpreting the said Rule. Appeal dismissed - decided against appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. CCE, Tirunelveli Vs. DCW Ltd. 2005 (192) ELT 548 (Tri. Chennai) 3. After hearing the Ld. AR and examining the records, I find that the issue to be considered in this case is whether the Cenvat Credit of the additional custom duty debited through DEPB against import licenses issued under earlier policy in respect of the bills of entries pertaining to year 2003 can be allowed in December, 2004 under the new Foreign Trade Policy. I find that the legal position is clear in this regard as the Notification No. 96/2004-Cus, through which the government provided the facility of Cenvat Credit of additional duty leviable against the amount debited in the Duty Entitlement Pass Book, prescribes that the DEPB should have been issued by the licensing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty under the Customs Act. Being operated through an exemption notification, such debit does not constitute payment of duties. Therefore, no drawback is admissible against debit of duties made in a DEPB Book. Further as per last sentence of Para 4.3.5 of the Exim Policy 2002-2007 dt. 01.04.2002, which reads as In cases, where the additional customs duty is adjusted from DEPB, no benefit of CENVAT/Drawback shall be admissible . However, the said last sentence of Para 4.3.5 was deleted vide para 11 of D.G.F.T. Notification No. 28 (RE-2003)/2002-07 dt. 28.01.2004. The Exim policy, 2002-2007 was substituted with the Foreign Trade Policy for the period 2004-2009 which came into force with effect from 01.09.2004. In relation to this policy, CBEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been decided that the additional customs duty paid through debit under DEPB shall also be allowed as brand rate of duty drawback. 3.- Accordingly, the instructions contained in Circular No. 3/99-Cus. dt. 03.02.1999 stand modified. Further as per the Central Excise Manual, CBEC in the form of question/Answer (FAQ) vide answer to Question No. 61 has clarified as Question 61. Am I entitled for credit of duty debited from DEPB? Answer:- Yes, CVD debited in the DEPB on the goods imported under the licence issued on or after 01.09.2004 is available as CENVAT Credit under the New Foreign Trade Policy (2004). In this connection CBEC Circular No. 59/2004-Cus. dt. 21.10.2004 (Para No. 6) refers. Further, the Hon'ble Tribunal in the cases of Essar S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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