2015 (11) TMI 1328

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....tion in this appeal. 2. The brief fact of the case is that the respondent engaged in the manufacture of excisable goods. They purchased part of the value based DEEC licenses bearing No. PL2320527 dated 6/8/1993., PL2050114 dated 5/3/1993 and NIL2049930 dated 26/2/1993 for enabling them to import input free from custom duty. The said licenses were duly transferred in favour of the respondent by the proper DGFT authorities. The respondent had imported three consignments of their inputs under Bills of Entry No. 11390 dated 28/3/1994, No. 11688 dated 29/3/1994 and No. 2755 dated 8/4/1994. The consignments of the inputs imported against the aforesaid Bills of Entry were cleared without payment of Custom duty under the exemption available under ....

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....ore we proceed to decide the matter on merit. The respondent has filed cross objection, they submitted that liceses were duly transferred in their favour by the proper authorities. They being bonafide purchaser of the licenses. As regard condition of non availment of input stage by the original license holder, it could not be insisted to be complied with by the transferee of the licenses. Condition of the non availment of modvat credit is applicable on the exporter of the goods, they being transferee and importer of the goods are not supposed to comply with the condition of modvat credit, therefore the said allegation of availment of modvat credit cannot be made against respondent. The respondent further submits that in the show cause notic....

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.... no modvat credit was availed and as such violated the condition V(a) of Notification No. 203/92-Cus. However, it is undisputed facts that show cause notice has no base or infact no single document has been relied upon in the show cause notice that the manufacturer exporter made a wrong declaration on the export documents that no modvat credit was availed on the input used in the export goods, the entire proceedings is vitiated by the Revenue as it failed to prove that the declaration is incorrect. Allegation of charge is possible only by adducing tangible documentary evidences such as modvat invoices, modvat account in respect of input of manufacturer exporter. No such exercise was carried out in order to issue effective show cause notice.....