2018 (7) TMI 1932

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....hrough 2003 Edition of Exim policy 2002-2007 introduced a Duty Free Credit Entitlement (DFCE) Scheme to accelerate growth in exports by rewarding star export houses, who had achieved a quantum growth in exports. High performing star export houses were entitled for duty free credit based on incremental exports, substantially higher than the general annual exports target fixed. The DFCE was issued to the appellant for quantum growth in Financial Year 2003-04 over the Financial Year 2002-03 at the prescribed rate. Vide Notification of Customs bearing No. 53/2003-CUS dated 01.04.2003, the Holder of DFCE Certificate was entitled to import goods which were exempted from payment of :- i) Whole of duty of customs leviable under First Sched....

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....15 dated 28.8.2016, the same was appropriated. Penalty was imposed under Section 11AB read with Rule 15 of the Cenvat Credit Rules 2004 and Rule 25 of the Central Excise Rules 2002. Hence, the present appeal before the Tribunal. Revenue has filed cross objection. 3. Heard both sides and perused the appeal records. 4. We find that on 01.04.2003, the Central Government, through the relevant exim policy 2002-07, introduced DFCE scheme to accelerate growth in exports by rewarding star export houses, who had achieved a quantum growth in exports and the appellant company having received the quantum growth was granted DFCE Certificate. By Notification No. 6(RE-2005)/2004-09 dated 4.6.2005 issued by the DGFT, New Delhi, Central Government,....

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....t the Central Government may, from time to time, formulate and announce by Notification in the Official Gazette, the export and import policy and may also in the like manner, amend that policy. (upto above corrected) 7. In the aforesaid provisions of the aforesaid acts, the Central Government by appropriate notification formulate and announce the exim policy 2002-07 and amend the same. Para 3.7.2.1 of the policy provided for DPC scheme and it was amended by notification No. 6(RE)/05/04-09 dated 4.6.2005, whereby Note-8 was inserted, which provided that additional customs duty / excise duty paid in cash or through debit under the DFCE entitlement certificate, would be adjusted as Cenvat credit as per rules framed by the Department of Reve....