TMI Blog2004 (4) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ct was dropped. 2. The respondents had imported raw materials during 1993-94 duty-free under Notification No. 203/1992-Cus., 19-5-92, declaring, inter alia, that they would be fulfilling all the relevant conditions under the notification. The imports were made under the DEEC scheme on the strength of Value Based Advance Licences issued by the Chief Controller of Imports and Exports, Ministry of Commerce. The chief condition under the notification was that the importer should not avail input credit under Rule 56A/57A of the Central Excise Rules, 1944 in respect of any inputs used in the manufacture of final products to be exported under the scheme. The respondents utilised the imported raw materials along with indigenous raw materials for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods as also from penal proceedings under the Customs Act, provided they reversed the entire Modvat credit on or before 31-1-97 and also paid interest on the credit amount on or before the said date for the period from the date of export to the date of payment. If any importer of goods under the DEEC scheme did not reverse Modvat credit and did not pay interest within the stipulated time, they were liable to pay customs duty on the imported goods as well as to be subject to penal proceedings like imposition of redemption fine in lieu of confiscation and imposition of penalty. In the instant case, as already indicated, a part of the Modvat credit was reversed beyond 31-1-97, a small amount in February, 1997 and another small amount in Augu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harati Telecom Ltd. were not eligible for amnesty under the scheme and were consequently liable to be proceeded against on the ground of violation of conditions of Notification No. 203/92. Consequently, the party had to satisfy the department's demand of customs duty on the imported raw materials. Ld. Senior Counsel has pointed out that a review petition filed by M/s. Bharati Telecom Ltd. against the above judgment was also rejected. 4. Ld. Counsel for the respondents has not cited any better binding judicial authority on the point. He, however, submits that the proposal for levy of interest is illegal inasmuch as, at the relevant time, there was no provision in the Customs Act authorising such levy. It is further submitted that there ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand of duty raised under the Customs Act on the ground of violation of conditions of the exemption notification. 6. We have given careful consideration to the submissions. We have seen the decision of the Tribunal in Bharati Telecom Ltd. v. CC, Nhava Sheva [2002 (142) E.L.T. A282 (S.C.)], which was affirmed by the Apex Court in the judgment cited by learned Senior Counsel. On the facts of that case, which we have already noted, the Tribunal declined to grant the benefit of Amnesty Scheme (under the DEEC scheme) to the assessee despite the fact that the entire amount of Modvat credit had been reversed by the party before 31-1-97. It was only the interest which remained unpaid after 31-1-97. The Tribunal's decision has been affirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done anything or omitted to do anything, which rendered the imported goods liable to confiscation under Section 111 of the Customs Act. If the party has to be penalised under Section 112, it has to be shown by the department that they had indulged in commissions or omissions with the belief/knowledge that such commissions or omissions would render the goods liable to confiscation under Section 111. We have not come across any allegation to this effect in either of the show cause notices. Therefore, any penalty under Section 112(a) of the Customs Act will not be sustainable on the respondents. 9. We have also examined the last submission made by the learned Counsel for the respondents, which is to the effect that the quantum of duty on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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