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TMI Blog2008 (11) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... PB scrip commenced to be allowed only after the Exim Policy and the DEPB Notification were appropriately altered. Therefore, the impugned order passed following the ratio of the Larger Bench decision of the Tribunal in Essar Steels Ltd. case is in accordance with law and the same does not call for any interference X X X X Extracts X X X X X X X X Extracts X X X X ..... s not required in terms of Notification No. 34/97-Cus dated 7-4-97 (when such duties were debited in the DEPB passbook) owing to the exemption extended in the above notification on condition that an amount equal to the duty due was debited in the DEPB passbook. Para 7.4.1 of the Exim Policy had only clarified the statutory restriction that Cenvat credit could be taken on additional duty of customs paid in cash and not by adjustment in DEPB scrip. As per the findings in the Tribunal order, credit was denied to the appellants owing to the exemption in Notification No. 34/97 only. 2.1 CBEC had clarified vide Circular No. 5/05-Cus dated 31-1-05, that education cess @ 2% could be paid debiting the DEPB scrip though the goods imported were gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs imported under the DEPB scheme from whole of the duty of customs leviable thereon whereas when it came to the additional duty of customs, the exemption was admissible "where specifically claimed by the importer". This qualification as regards the exemption to additional duty of customs was removed in the successor notification when the department started allowing çenvat credit of such additional duty of customs. Therefore, the impugned order was entirely consistent with the statutory provisions and did not call for any interference. 5. I have carefully considered the case records and the rival submissions. Notification No. 34/97-Cus dated 7-4-97 as amended extends an exemption from payment of duties of customs aimed at promoting ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 34/97 dated 7-4-97 and successor notifications extend exemption from payment of duty of customs leviable on goods imported. This is achieved by neutralizing the incidence of customs duty on the import content of the export product by granting duty credit against the exports made. At the material time, the scheme did not envisage extension of credit of additional duty of customs paid. The scope of the scheme was made clear in the Exim Policy as well as the DEPB Notification. 5.2 Subsequently, the Government decided to enlarge the scope of the DEPB scheme and extended the benefit of Cenvat credit also to inputs imported against export of the corresponding final products. Accordingly, the notification extending the exemption under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit owing to express statutory prohibition against such availment. The same became admissible even if paid by adjustment in DEPB scrip when the Exim Policy and the exemption notification were appropriately amended. In the circumstances, the plea of the appellants that the additional duty of customs debited in the DEPB book at the material time could be allowed as the Cenvat credit scheme remained unchanged and such credit is allowed since 2005 is not acceptable. The credit of the additional customs duty paid by adjustment in DEPB scrip commenced to be allowed only after the Exim Policy and the DEPB Notification were appropriately altered. Therefore, the impugned order passed following the ratio of the Larger Bench decision of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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