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TMI Blog2018 (5) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... he debit of any amount under the DEPB Scheme is a mode of payment of duty on the imported goods and the goods cleared under DEPB Scheme cannot be treated an exempted goods, but they can only be treated to be duty-paid goods. Demand do not sustain - appeal allowed - decided in favor of appellant. - E/409/2011 - Final Order No. 41074 /2018 - Dated:- 9-4-2018 - Hon ble Ms. Sulekha Beevi, Member (Judicial) And Hon ble Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Sai Prashanth, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent. ORDER Per Bench The appellants are registered with the Central Excise department and are engaged interalia in manufacture of refined edible oil. They were ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the original authority confirmed the duty demand along with interest and also imposed penalty. Aggrieved, the appellant is now before the Tribunal. 2. On behalf of the appellant, Ld. Counsel Shri R. Sai Prashanth submitted as follows:- (a) That during the impugned period, some quantity of RBD Palmolein Oil was imported on payment of appropriate CVD by debit of DEPB scrip in items on Notification No.: 45/2002-Cus. dated 22.04.2002. The appellant cleared their final products without payment of duty by availing exemption under Notification No. 6/2002-CE dated 01.03.2002. Entry Sl. No. 244 of the Notification No.: 6/2002 read as under:- Sl No. Chapter or Heading No. or Sub-Heading No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. Commissioner ]2009 (244) ELT A121 (SC)]. Further reliance is placed on RE: Vinati Organics Ltd. [2014 (311) ELT 994 (G.O.I)], wherein it was held that payment of CVD through DEPB Scrip can be treated as payment of duty and hence the assesse in that case was held to be eligible to avail Cenvat Credit / Duty Drawback on the said goods on which duty was paid vide a DEPB entry. In the case of Universal Power Transformer P. Ltd. vs. CCE [2010 (256) ELT 244 (Tri.-Bang)], it was held that the Debit entries made in the SFIS Certificates are considered as discharge of duty liability, by relying on the ratio pronounced by the Hon ble Madras High Court in the case of Tanfac Industries (supra). (c) Intention of the department to treat DEPB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utralising the incidence of Customs duty on the import content of the export product and it is provided by way of grant of duty credit against the export product and the additional customs duty/excise duty paid in cash or through debit under DEPB shall be adjusted as CENVAT Credit or Duty Drawback. The important paragraphs of the Circular dated 20-7-2007 are extracted hereunder : Interest payable on clearance of warehoused goods when duty paid through DEPB debit. Circular No. 26/2007-Cus., dated 20-7-2007 F. No. 475/04/2006-LC Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi. Subject :Waiver of interest on goods cleared from a warehouse when duty is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Act, 1962 provides for charging of interest on duty payable on clearance of warehoused goods. Section 61(d)(i) and (ii) provides that the interest shall be payable on the amount of duty payable at the time of the clearance of the goods from the warehouse. In case of clearances under DEPB Scheme, the amount of duty payable is required to be debited from DEPB scrip. Therefore, it cannot be considered that the duty payable is nil or exempted. This is further supported by the fact that the CENVAT credit or duty drawback is available even when the additional Customs duty is debited under DEPB. 5. The issue regarding interest on warehoused goods has already been clarified by the Board vide Circular No. 10/2006-Cus., dated 14-2- 2006 clar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are meant for use in the manufacture of export product or replenishment of the raw materials already used. The clearance is allowed duty free. The details of items allowed product are published by the Ministry of Commerce in their Input Output Norms which are part of the Exim Policy. DEPB Scheme Under this scheme, the exporters are issued DEPB scrips which allows them the specific amount to be utilized for payment of Customs duty. The amount for which DEPB scrip is issued depends upon the rate for a particular export product. The Ministry of Commerce notifies DEPB credit rates for export of all item. The DEPB scrip is freely transferable and can be used to debit the payment of duty at the time of clearance of goods except capital ..... X X X X Extracts X X X X X X X X Extracts X X X X
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