Home Case Index All Cases Customs Customs + AT Customs - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1576 - CESTAT MUMBAIRefund of duties paid in excess - benefit of N/N. 94/96-Cus dated 16th December 1996 - denial of refund on the ground that MODVAT Credit availed - HELD THAT:- Appellant had discharged duty liability on re-import as though the goods had been imported for the first time. There can be no doubt that the excess duty collected was required to be dealt with in accordance with section 27 of Customs Act, 1962. N/N. 94/1996-Cus does not impose any condition pertaining to availment of MODVAT credit; indeed, except in certain exemption notifications dealing notably with export promotion schemes, the law relating to customs does not make any reference to MODVAT, or to its successor CENVAT, credit. To the extent that the notification is silent on this aspect, the lower authorities, exercising jurisdiction under Customs Act, 1962 could not have made any reference to, or imposed, any condition not contemplated in the exemption notification. Just as exemption notification are to be strictly construed against the importer so, too, must there be no latitude vested with officers of customs to enforce any condition on whim or according to their wisdom. CENVAT credit is availed on entry of eligible goods in the factory of manufacture. There is no evidence here of such availment and there is mere presumption of availment, and extent, of such credit. Under the relevant rules, credit availed on goods that are not used in the factory should be reversed and in the event of failure to reverse consequences under other specific statutory provisions would arise . That cannot be read into the provisions of Customs Act, 1962 to deny refund of duty paid in excess of that which was to be collected and held to be so by the Tribunal. Appeal allowed - decided in favor of appellant.
|