2007 (11) TMI 226

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....r the authority of the same.  Subsequently, the appellants were issued two Show Cause Notices raising the demand of duty against them on the ground that the condition of Notification No. 203/92 as regards non-availment of Modvat Credit in respect of the input used in their exported product do not stands fulfilled.  The said demands were confirmed against the appellant and penalties imposed. Hence, the present appeal. 2. After hearing both sides duly represented by Shri J.C. Patel, learned advocate for appearing for the appellant and Dr.M.K. Rajak, learned SDR appearing for the Revenue, we find that the appellant made exports, in terms of Notification No.203/92-Cus dt.19.5.92 and was given advance licenses for duty free imports.....

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.... that in  any case, the appellant, at the time of export had  made declaration that no modvat credit stands availed by them. To the same effect was the declaration by the merchant manufacturer. Subsequent enquiries conducted by the revenue are in the nature of a report dated 22nd August, 2000 given by the Superintendent which  also admits that there is nothing on record to correlate the taking of the modvat credit by the merchant manufacturer with the involved shipping bills and advance licenses. As such, it has been strongly argued  that there was no  evidence to correlate  taking of  modvat credit availed in respect of inputs used in the exported goods. 4. We are fully agree with the larned advocate t....