TMI Blog2003 (11) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the conditions of the said notification. He also cites the Review Order No. 39-R/98, dated 6-2-1998 passed by the Board pointing out that the licensee deliberately suppressed the fact of having taken Modvat credit under Rule 57A and wilfully made a wrong declaration to the licensing authority to obtain endorsement of transferability. He further states that the original licence holder, having availed of the Modvat credit in respect of the goods exported, was not eligible for duty exemption under Notification No. 204/92 and therefore, the transfer of the licence was illegal and in any case, the transferee cannot get duty exemption which was not available to the original licence holder. Shri Singhal, also places reliance on Tribunal's ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra), since in view of the refund taken, the credit is as good as not reversed. 3. We also find that the demand notice has been issued invoking the first proviso to Section 28(1) of the Customs Act, 1962 which refers to "collusion or any wilful mis-statement or suppression of fact by the importer or exporter or agent or employee of importer or exporter." The plain reading of the said proviso makes it clear that duty demand is sustainable even if mis-statement or suppression has been done by the exporter. We observe that the Commissioner has dropped the duty demand as well as the notice for imposition of penalty on the ground that the mis-statement, and suppression by the licence holder has been made before the licensing authority and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to do the impossible. First of all, the scheme is optional and anyone who wants to avail of the same must subject himself to the conditionalities thereof which have a valid public purpose. The scheme is designed to make available duty free inputs for the export product. The condition ensures that a person who has already taken credit of input duty does not avail of a second benefit by import of duty free goods. The fact that majority of exporters have availed of the scheme fulfilling the conditions under the scheme also goes to show that the conditions attached to the scheme are not impossible to comply with. 5. Moreover, in this case fraudulent mis-declaration and suppression of facts before public authorities have been resorted to in or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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