DEPB credit cannot be used for capital goods cleared after the public notice restricting such utilisation.

The Public Notice dated 07.04.2000 restricted DEPB credit to freely importable items and excluded capital goods. Because the Bills of Entry were filed after that date and the imported goods were cleared as capital goods, the earlier DEPB scrip could not override the restriction in force on the date of clearance. DEPB credit was therefore not available for payment of customs duty on the imported capital goods, and the Revenue's appeal succeeded.

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Issues: Whether, after the Public Notice dated 07.04.2000, DEPB scrips could be utilised for payment of customs duty on imported capital goods cleared after that date.

Analysis: The restriction introduced by Public Notice No. 6(RE 2000)/1997-2002 amended paragraph 7.36B so that DEPB credit could be used only for items freely importable and not for capital goods. The Bills of Entry were filed after the public notice, and the imported goods were accepted as capital goods. The earlier DEPB scrip did not override the restriction applicable on the date of clearance.

Conclusion: DEPB credit was not available for payment of customs duty on the capital goods imported after 07.04.2000, and the Revenue's appeal succeeded.

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