TaxTMI 
TaxTMI 
2008 (10) TMI 92
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....erials required for the manufacture of final products for supplies to projects financed by World Bank. There was a delay in the sanction of project finance by World Bank in respect of the Transmission Project, because of which the suppliers of the above materials could not avail the benefit of the said Notification. The Directorate-General of Foreign Trade (DGFT) issued Public Notice No. 18 dated 1-7-1999 extending deemed export benefit (exemption from customs duty on inputs and terminal excise duty) for supply to the above projects pending sanction of loan by World Bank. According to this public notice, if the World Bank loan failed to come through, deemed export benefits would continue to be available for the suppliers of materials. Howev....
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.... the appellants. 3. The appellants have placed on record copies of 2 Orders-in-Appeal Viz. No. 149 & 150/2006, both dated 5-7-2006, passed by the Commissioner of Customs and Central Excise (Appeals), Nasik. In these Orders-in-Appeal, a similar question was considered by the appellate Commissioner who held that the claim of refund was not time-barred. The appellate authority treated the payments of duty to have been made 'under protest'. On the last occasion, we wanted the SDR to ascertain whether the above Orders-in-Appeal had been appealed against or not. It is submitted today that no appeal was filed against the said Orders-in-Appeal. 4. It is submitted by the learned counsel for the appellants that they were constrained to pay duty....
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..... Chennai, Cochin, Bangalore etc. Copies of the relevant orders have also been placed on record. 5. The learned counsel has also claimed support from the Tribunal's decision in the appellant's own case vide Power Grid Corporation of India Ltd. v. Commissioner of Central Excise, Thane-I - 2007 (212) E.L.T. 51 (Tri. - Mumbai), wherein a penalty imposed on the company, which was associated with a demand of duty on the material-supplier, was set aside along with the demand of duty on the supplier, taking into account subsequent sanction of loan by World Bank. The Tribunal's decision in Deepak Cables (India) Ltd. v. Commissioner - 2006 (206) E.L.T. 246 (Tribunal) cited by the learned counsel is also to the same effect. 6. It is submitted b....
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....dication. The Tribunal held that, till such adjudication, the amount reversed in MODVAT credit account would merely remain a 'deposit'. It will assume the nature of duty only with adjudication. The learned counsel has heavily relied on this case law. It has also been argued that the appellants' case is also supported by the view taken by senior representatives of the ministries concerned to the effect that the time-bar provisions should be relaxed in respect of refund claims filed by parties associated with execution of power projects with assistance from World Bank. We have found a valid point with the counsel. What was paid by the appellants was the cash equivalent of the duty of customs forgone by the Department as deemed export benefits....