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2006 (1) TMI 380 - AT - Central ExciseDemand - Cenvat/Modvat of the CVD payment on the imported inputs - Exemption under Notification No. 203/92-Cus.- amount of credit was in connection to quantity based exports and have expressed their difficulty to produce such documents - HELD THAT:- We find that the Tribunal in the above referred case has observed that Notification No. 203/92-Cus. grants exemption from Customs duty on imported goods subject to the fulfilment of various conditions. One such conditions referred to is taking Modvat credit. If Modvat credit had been taken, the Department would be entitled to deny the benefit of the exemption to the imported goods for the reason that the condition embodied in the notification has been violated. But it does not follow that the Modvat credit can be denied. The Tribunal also rejected the contention raised by the DR that this point was not taken up by the assessee before the Commissioner on the ground that the point is a basic and fundamental one and should have occurred to the adjudicating authority, without being pointed out by the assessee. Revenue cannot compel the assessee to fulfil the conditions of the notification by coercing them to reverse the credit. If the credit has not been reversed, the same would amount to non-fulfilment of the condition of the notification, thus resulting in denial of the benefit under the said notification. As such, we are of the view that the confirmation of demand against the appellant is not justified. We set aside the same along with setting aside the personal penalty. Appeal allowed with consequential relief to the appellant.
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