Advance licence exemption turns on proof of non-availment of Modvat credit; vague notice and no remand.

Transferee eligibility for duty exemption under Notification No. 203/92-Cus depended on non-availment of Modvat credit by the licence holder, and the department had to verify that condition. The note records that no such verification was shown, the show cause notice was vague, and the long lapse of time since the imports made remand unnecessary. On that basis, the Revenue's reliance on cited precedents did not assist its case because the controlling issue had already been settled in favour of transferees and the facts did not show availed Modvat credit. The burden was therefore not discharged, remand was declined, and the appeal was rejected.

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Issues: Whether the transferee of an advance licence was required to prove non-availment of Modvat credit as a condition for duty exemption under Notification No. 203/92-Cus dated 19.05.1992, and whether the matter warranted remand for verification.

Analysis: The records did not show any verification by the department regarding availment of Modvat credit by the licence holder, and the show cause notice was found to be vague. In view of the long lapse of time since the imports, remand was considered unnecessary. The reliance on the cited precedents did not advance the Revenue's case because the controlling issue had already been settled in favour of transferees, and the facts of the present matter did not show evidence of availment of Modvat credit.

Conclusion: The burden was not shown to have been discharged by the department, remand was declined, and the appeal was rejected.

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