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2018 (7) TMI 1932

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..... to time, formulate and announce by Notification in the Official Gazette, the export and import policy and may also in the like manner, amend that policy. (upto above corrected) . The Central Government by appropriate notification formulate and announce the exim policy 2002-07 and amend the same. Para 3.7.2.1 of the policy provided for DPC scheme and it was amended by notification No. 6(RE)/05/04-09 dated 4.6.2005, whereby Note-8 was inserted, which provided that additional customs duty / excise duty paid in cash or through debit under the DFCE entitlement certificate, would be adjusted as Cenvat credit as per rules framed by the Department of Revenue. The Department of Revenue, by its circular dated 13,10.2006 clarified that Additional C .....

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..... t. (A.R.) for the Revenue ORDER PER CORAM The facts of the case in brief are that the appellant is an Exporter and is granted a certificate of Status Holder by the Licensing Authority being the office of Zonal Joint Director of Foreign Trade, Kolkata. On 31st March, 2003, The Central Government, Ministry of Commerce, through 2003 Edition of Exim policy 2002-2007 introduced a Duty Free Credit Entitlement (DFCE) Scheme to accelerate growth in exports by rewarding star export houses, who had achieved a quantum growth in exports. High performing star export houses were entitled for duty free credit based on incremental exports, substantially higher than the general annual exports target fixed. The DFCE was issued to the appellan .....

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..... r, 2005. The Show Cause Notice also alleged clandestine removal on account of shortage. The Adjudicating Authority confirmed the Cenvat duty of ₹ 1,66,79,418/- . Cenvat Duty amounting to ₹ 1,75,978/- was ordered to be recovered and since the amount already stood debited vide Cenvat Credit Account only at Sl. No. 15 dated 28.8.2016, the same was appropriated. Penalty was imposed under Section 11AB read with Rule 15 of the Cenvat Credit Rules 2004 and Rule 25 of the Central Excise Rules 2002. Hence, the present appeal before the Tribunal. Revenue has filed cross objection. 3. Heard both sides and perused the appeal records. 4. We find that on 01.04.2003, the Central Government, through the relevant exim policy 2002-07, in .....

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..... n cess paid on the inputs. There is also no dispute regarding the receipt of the goods in the factory of the appellant and used in or in relation to the manufacture of final products, which were subsequently cleared on payment of Excise Duty. Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, provided that the Central Government may, from time to time, formulate and announce by Notification in the Official Gazette, the export and import policy and may also in the like manner, amend that policy. (upto above corrected) 7. In the aforesaid provisions of the aforesaid acts, the Central Government by appropriate notification formulate and announce the exim policy 2002-07 and amend the same. Para 3.7.2.1 of the policy provi .....

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..... e passing of the impugned order. In our considered opinion the Notification dated 17.11.2005 amending the basic Notification 53/2003 is a classificatory Notification and should be applied from the date of DGFT Notification. 8. In view of the above dissuasion, benefit of credit should not be denied. 9. Regarding the shortage of 52.250 MT of goods, it was alleged to have been found short. It is the case of the appellants i.e. the shortage was due to difference arising on account of weighment on different weigh bridges. Such quantity works out to be only 1.15% of the total quantity 7375 MT. We observe that such percentage of shortage is not made the goods having different calibrations. 10. On perusal of records we do not find any ingr .....

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