2002 (7) TMI 684

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....and 19-10-1992 M/s. DCL Polyester Limited (hereinafter referred to as the importers) were issued two Value Based Advance Licences. In December, 1994 and January, 1995 they completed the export obligation under VBAL licences by using inputs namely PTA (Purified Terephthalic Acid), MEG (Mono Ethylene Glycol), TIO2 (Titanium Dioxide) and by exporting polyester synthetic filament yarn (non-textured). In February, 1996 their plant was visited by the Preventive Officers of the Nagpur Commissionerate and they were directed to reverse an amount of Rs. 1,17,00,296/- worked out on the basis that Modvat credit of Rs. 64,90,252/- and Rs. 52,10,039/- was availed towards both the above VBAL licences on the entire quantity of inputs required for the manuf....

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....he department's Review Application against order dated 26-1-1996 granting refund. It is against this order that the manufacturer has filed appeal No. E/1837/2000-Mum. 3. In the meanwhile on 23-5-1997 the Assistant Commissioner of Central Excise, Bhandara Division, issued a notice to the importer under Section 11(A) of the Central Excise Act, 1944 proposing to recover the refund amount of Rs. 1,11,76,467/- which was adjudicated by order dated 25-7-2001 of the Commissioner of Central Excise confirming the duty demand. Against this order the manufacturer has filed an appeal E/3260/2001-Mum along with the stay application. 4. Simultaneously with the proceedings under the Central Excise Act, 1944, proceedings under the Customs Ac....

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.... any further Modvat credit under Rule 57A. This contention is clearly unsustainable and it is not the department's case in the appeal that such examination having been carried out by the Revenue after passing of the impugned order of the Commissioner, the reversal made by the respondent had been found to be incorrect. The respondents have clearly explained that they have reversed credit of Rs. 5,24,829/- in respect of duty paid on inputs such as PTA (Purified Terephthalic Acid), MEG (Mono Ethylene Glycol), TIO2 (Titanium Dioxide), and used towards export obligation and since the balance inputs were replenished without payment of duty under VBAL, they are not required to reverse the credit in respect of those inputs. Further the Commissioner....