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TMI Blog2019 (2) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ly i.e. into DTA and claiming exemption from payment of duty; that appellant is required to pay customs duty as calculated by the authorities on the inputs consumed for manufacturing of final products which were cleared locally into DTA - the relevant portions of the CENVAT credit Rules clearly indicate that the CENVAT credit cannot be utilised for payment of customs duty. In the case in hand, Revenue authorities are correct in demanding the amount of customs duty, in cash, on the raw materials consumed for manufacture of finished goods which are cleared to DTA by claiming exemption - No provisions in the CENVAT Credit Rules permit the appellant herein to use the balance for discharging the customs duty on the imported goods. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption under customs duty as per Notification No. 21/2002-Cus, 22/2003-CE and 52/2003-Cus after executing required B-17 bond. During the period in question, appellant cleared Iopamidol to DTA claiming exemption from central excise duty under Notification No. 04/2006-CE dated 01.03.2006. After investigation, Revenue authorities were of the view that appellant has to pay the customs duty foregone by the department on the inputs which were used for manufacturing of Iopamidol cleared to DTA. Appellant herein after calculations debited the CENVAT register with the amount as customs duty on the inputs consumed in the manufacture of Iopamidol cleared into DTA by claiming exemption. It is the case of the Revenue that appellant cannot utilise the CEN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue is only demanding the amount of customs duty payable by the appellant in cash and not through debit in CENVAT account. It is his submission that there is no dispute as to the fact that the raw materials imported for consumption in the DTA and the final manufacture is exported as well as cleared locally. It is his submission that they are not demanding the customs duty on the inputs which are consumed for manufacture of final products and subsequently exported. 4. On a careful consideration of the submissions made by both sides, we find that the issue is that whether appellant herein can utilise balance in CENVAT credit account for discharge of customs duty like basic customs duty, additional customs duty (CVD) and special customs dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms duty, in cash, on the raw materials consumed for manufacture of finished goods which are cleared to DTA by claiming exemption. In our view, no provisions in the CENVAT Credit Rules permit the appellant herein to use the balance for discharging the customs duty on the imported goods 8. At the same time, learned counsel was correct in stating that if all the amounts which are due from the appellants if paid in cash, the CENVAT credit which has been debited should be restored. We do find strong force in these contentions. We direct that the appellant should discharge all the customs duty in cash, calculated by the Revenue authorities, on the imported goods consumed in manufacturing of final products cleared to DTA claiming exemption, on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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