2017 (5) TMI 757

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....rate of 2.5 percent for each quarter for the entire period instead of 50% depreciation of credit availed in the first year and the balance 50% percent on the credit availed in the subsequent year. A demand of Rs. 2,47,824/- for the period 2011-2012 to August 2015 was raised along with interest and proposal for imposition of penalty. Another demand of Rs. 1,37,817/- was raised on the ground that they had exported 16 numbers of Motorcycles and Scooters free of cost (FOC) basis to their counterpart in Japan and they did not realize any foreign exchange in respect of the said export till date. The show cause notice for these demands and three other demands was issued on 06.10.2015. The matter was adjudicated. Both the above mentioned demands of....

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....at there was no condition in these rules to earn foreign exchange whereas in the Notification No. 45/2001-CE (NT), the condition of foreign exchange is expressly stated, which showed the legislative intent. He relied on the order of the Principal Bench in a stay application  in the case of Maruti Suzuki India Ltd. Vs. CCE, Delhi-III 2013 (294) ELT 604. He contended that once RBI has waived the condition of receipt of foreign exchange, the Central Excise Department cannot insist on the same. 4. On the first demand, Ld. AR reiterated the findings of the ld. Commissioner in Para 29 of the Order-in-Original. On the second issue, he invited the attention to Para 34 of the Order-in-Original and stated that the RBI Master Circular deals on....