Import exemption under Notification No. 203/92-Cus depended on whether Modvat credit had actually been availed in export manufacture.

Import exemption under Notification No. 203/92-Cus turned on whether Modvat credit had been availed in manufacturing the exported goods. The record noted a shipping declaration stating that no Modvat credit had been taken, and the assessment appeared to have been made provisionally pending verification of that declaration. The matter was remitted to the Commissioner to examine any evidence the importer might produce on the credit issue and to decide the notice afresh in accordance with law; the impugned order was set aside. The requests relating to cross-examination and limitation were not entertained.

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Issues: Whether the imported goods were denied the benefit of exemption under Notification No. 203/92-Cus on the ground that Modvat credit had been availed in the manufacture of the exported goods.

Analysis: The finding of ineligibility was challenged on the factual basis that Modvat credit had not in fact been taken. The material on record indicated a declaration in the shipping documents that no Modvat credit had been availed, and the departmental assessment appeared to have proceeded provisionally pending verification of that declaration. The remaining prayers regarding cross-examination and limitation were not entertained.

Conclusion: The matter was remitted to the Commissioner to consider the evidence that the appellant may produce on the question whether Modvat credit had been availed, and to decide the notice afresh in accordance with law. The impugned order was set aside.

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