DEPB credit utilisation remains valid where the scrip is registered at Singanallur and TRA procedure is unnecessary.

Where a DEPB scrip was registered at Singanallur, the requirement to follow the TRA facility under Circular No. 16/99, as amended by Circular No. 70/99, did not arise. The registration at Singanallur meant there was no objection to using the DEPB credit for import clearance, and the customs duty demand based on non-coverage by Notification No. 34/97-Cus. was unsustainable. The assessee was therefore entitled to utilise the DEPB credit.

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Issues: Whether the customs duty demand could be sustained on the ground that Notification No. 34/97-Cus. did not cover Singanallur and whether the assessee was barred from utilising DEPB credit because TRA facility was required.

Analysis: The DEPB scrip was registered at Singanallur. In that situation, the requirement of following TRA facility under Circular No. 16/99, as amended by Circular No. 70/99, did not arise. Once the scrip stood registered at Singanallur, there was no objection to utilisation of the DEPB credit for import clearance.

Conclusion: The demand of customs duty was unsustainable and the assessee was entitled to utilise the DEPB credit.

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