2017 (9) TMI 1739 - AT - Customs

Appellate tribunal denies cenvat credit on additional customs duty for defective goods under DEPB scheme.

The appellate tribunal upheld the decision that the appellant was not entitled to cenvat credit on additional customs duty paid on defective goods ... CENVAT Credit - benefit of N/N. 94/96-Cus. Dated 16.12.1996 - DEPB Scheme - goods went out of India when came back to India being found to be defective - recovery of excise duty lost - Held that:- It does not appeal to common sense why additional duty of customs payable by the appellant shall be allowed towards cenvat credit when the goods earlier manufactured in India and exported duty free, came back, shall be treated in par with domestic goods insofar as leviability of excise duty is concerned - appellant is not entitled to cenvat credit of the additional duty of customs paid since excise duty has already been lost by Revenue while the goods under DEPB declaration left India duty free. Appeal dismissed - decided against appellant. The appellate tribunal dismissed the appeal stating that the appellant is not entitled to cenvat credit of the additional duty of customs paid on defective goods returned to India under DEPB scheme. The goods, originally exported duty-free, were considered as domestic goods upon return, and excise duty had already been lost by the Revenue.