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TMI Blog2001 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... by exporting goods manufactured in India in respect of which no input stage credit is obtained under Rule 56A or 57A of the Central Excise Rules, 1944. 2.The department by show cause notice dated 3rd September, 1997 alleged that the appellant had suppressed the fact that it had availed of modvat credit on the inputs used in the manufacture of the exported goods for wrongly availing duty free benefit against the licence. 3.The appellant in response to the show cause notice stated that the advance licence was obtained by it on 1st June, 1993 and it had completed the export obligations by July, 1993. The appellant claimed that it had reversed the modvat credit and rectified the error in their records as far back as in January-February 1994. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled and the appellant had violated the terms of the exemption Notification No. 203/92 by availing modvat credit contrary thereto, the show cause notice was confirmed imposing custom duty and also the interest and the penalty. 6.The appeal filed by the appellant before the Customs, Excise & Gold (Control) Appellate Tribunal partially succeeded inasmuch as order of the Commissioner imposing penalty and demanding interest was set aside but it was confirmed in respect of demand of duty liability to the tune of Rs. 52,41,600/-. 7.Challenging the order of the Tribunal, learned counsel for the appellant contends that the respondent was not justified in denying the benefit of the Amnesty Scheme to its client on the ground that it had reversed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was directed that the petitioners in those cases shall be entitled to release of the goods imported without payment of the customs duty. Counsel contends that the said order had reversed the decision of the High Court of Orissa in Raj Exports v. National Aluminium Co. Ltd. [1996 (87) E.L.T. 349 (Ori.)] whereby the High Court had declined to grant relief to the exporter on account of breach of the conditions of the same exemption notification. The orders dated 21st and 22nd January, 1997 relied upon by the learned counsel were passed on the facts of the said case without settling any principle and without reversing principles laid down by the Orissa High Court. It has not been held by this Court that even in case of non-compliance of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer of the final products, provided that credit of duty paid on the inputs in such exempted final products." Para 8 of the judgment relied upon by the learned counsel reads thus : This circular deals"8. with a case where the manufacturer produces dutiable final products and also final products which are exempt from duty and it is not reasonably possible to segregate inputs utilized in manufacture of the dutiable final products from the final products which are exempt from duty. In such a case, the manufacturer may take credit of duty paid on all the inputs used in the manufacture of final products on which duty will have to be paid. This can be done only if the credit of duty paid on the inputs used in the exempted products is debited i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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