TaxTMI 
TaxTMI 
2008 (8) TMI 181
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....tively. In the circumstances, there is no point in keeping the appeals pending. Accordingly, after allowing the above applications, I take up the appeals. 2. The appellants had imported "Acid Grade Fluorspar" and ware-housed the same in their private bonded warehouse under into-Bond Bills of Entry and subsequendy cleared the same from the warehouse under ex-bond Bills of Entry by availing the benefit of Customs Notifications 45/02 dt. 22-4-02 and 96/04 dt. 17-9-04. The ex-bond Bills of Entry (six in number filed from Feb'04 to June '05) were provisionally assessed under Section 18 of the Customs Act and the same were finally assessed later on. The benefit of the above Notifications was granted in final assessments. The Notifications exempt....
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....on such amount under Section 61(2) of the Act. On the other hand, according to the assessee, the warehoused goods were cleared by availing exemption under the above Notifications and, therefore, there is no question of levy of interest on the amount debited in DEPB scrips. According to them, the debiting in DEPB scrips was a procedural formality which did not involve flow of money from the assessee to the Revenue. In the absence of principal, there can be no levy of interest. In this connection, the counsel has relied on Tarajyot Polymers Ltd. v. Commissioner, 2008 (222) E.L.T. 451 (Tri.-Chennai) and Commissioner v. Kanoongo Estate Pvt. Ltd., 2008 (223) E.L.T. 287 (Tri.-Chennai), wherein a learned single Member of this Tribunal held that th....
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....s cleared through debit under DEPB are exempted goods and, accordingly, no Cenvat or drawback was allowed for such payments." The same view was taken by a Larger Bench of this Tribunal in the case of Essar Steel Ltd. v. Commissioner, 2004 (173) E.L.T. 239 (Tri.-LB). It appears, with the amendment of law, both the Board and this Tribunal reversed the stand. In the aforesaid circular, the Board clarified that the goods cleared by debits through DEPBs were to be treated as duty-paid and that Cenvat credit or duty drawback was available to the importer in respect of the amounts so debited. This Tribunal, in the case of Seshasayee Paper and Boards Ltd. (supra), held that they were entitled to Cenvat credit of the amount debited in DEPB as certif....