2010 (5) TMI 290

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....verified the documents relating to purchase of yarn and the export of garments. During the course of investigation, it was revealed that the appellant is registered with the Central Excise department and procured goods from various suppliers. It was also noticed that the appellant had manufactured garments utilizing the duty free yarn and exported garments through various ports under DEPB Scheme and certain portion under duty drawback scheme. The appellant has also procured duty paid yarn and availed CENVAT credit in respect of certain cases utilized in the manufacture of garments and subsequently exported the same under duty drawback scheme claiming full drawback instead of Customs portion of drawback. Statement of authorized signatory was....

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....). A show-cause notice was issued and the same was adjudicated and was ordered to recover ineligible drawback scheme and received on account of subject exports made amounting to Rs. 115759/- (Rs. 37,214/- ineligible drawback on account of duty free yarn +  Rs. 78,545/- ineligible drawback on account of Cenvat availed yarn) along with interest. Aggrieved by the same the appellant is before me. 4. The authorised representative appearing on behalf of the appellant submits that they have wrongly availed the CENVAT credit as well as duty drawback but on realisation of their mistake they reversed the CENVAT credit availed by them and after adjudication they also paid the duty drawback claimed by them. He further submitted that they were n....

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....CENVAT credit amounts non-availment of CENVAT credit. In that case, although the credit was availed but was not utilised but in this case the appellant on realising that they have committed an error by availing CENVAT credit and claiming duty drawback they reversed the CENVAT credit along with interest and paid some duty drawback portion with interest. In the case law cited by the learned DR in Nicholas Piramal (India) Ltd., the Hon'ble Bombay High Court has held that in the case of Chandrapur Magnet Wires (P) Ltd. "the issue for consideration was whether availing of modvat credit on inputs used in the manufacture of exempted final product in terms of the rules as then in force" but in the case of Nicholas Piramal (India) Ltd. the Hon'ble H....