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2020 (3) TMI 1434 - AT - CustomsDenial of benefit available under Advance Licence Scheme by N/N 203/92-Cus., dated 19-5-1992 - Benefit denied on the ground that the appellant had availed the input stage Modvat credit, which was in violation of provisions of Para 126 of the Handbook of Procedures laid down in the EXIM Policy, 1992-97 read with the Notification dated 19-5-1992 - HELD THAT:- It is an admitted fact on record that the Advance Licence was issued by the office of DGFT in favour of M/s. Hap International, which was transferred in favour of the appellant for procurement of the duty free imported goods. On perusal of the case records, it transpires that the appellant had not availed any Modvat credit in respect of the goods imported by it. It is also not the case of Revenue that the Advance Licence was fraudulently obtained by the appellant. Since the said licence was transferred by the original licencee to the appellant under the confirmation of the office of DGFT, availment of Modvat credit by the transferor cannot be questioned subsequently by the Customs Authorities for denying the benefit of the duty exemption to the appellant. The identical issue had been considered by the Larger Bench of this Tribunal in the case HICO ENTERPRISES VERSUS COMMISSIONER OF CUSTOMS, MUMBAI [2005 (9) TMI 625 - CESTAT MUMBAI], holding that endorsement of valid licence by the competent authority i.e. DGFT cannot be questioned by the Customs Authorities, in absence of any provisions contained in the exemption notification - the Civil Appeal filed by Revenue against the said Larger Bench decision was dismissed by the Hon’ble Supreme Court in COMMISSIONER OF CUSTOMS (IMPORTS), BOMBAY VERSUS HICO ENTERPRISES [2008 (4) TMI 117 - SUPREME COURT]. There are no merits in the impugned order - appeal allowed.
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