2004 (8) TMI 123

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....ms (both basic plus additional) when the duty leviable on the goods is debited to the DEPB . 2. We have heard both sides. Under the DEPB Scheme credit is given to exporter in the Duty Entitlement Pass Book by the DGFT authorities when the goods are exported. Credit obtained by an exporter can be used to discharge import duty liability on the goods imported. The scheme is basically a brain child of Commerce Ministry. In order to facilitate importers availing of the Scheme, the Govt. of India, Ministry of Finance issued Notification No. 34/97-Cus. which exempts duties of customs leviable on imported goods provided such duties are debited to credit available in the pass book issued by DGFT. In case entire duty payable cannot be debited in t....

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....vat credit. He submitted that the decisions relied upon by the learned Counsel have not considered that the importer availed of the benefit of Notification 34/97-Cus., and, therefore, these decisions are distinguishable and cannot be relied upon to support the appellants' stand. 5. We have carefully considered the rival submissions. Modvat scheme is a special scheme where an assessee can avail of the duty paid on inputs as Modvat under certain conditions. One such condition is that duty should have been paid on the inputs. In the present case, no such duty has been paid by availing of the benefit of Notification 34/97. In the cases relied upon by the learned Counsel for the appellant the Tribunal observed that the Department was standing....