TaxTMI 
TaxTMI 
2004 (8) TMI 123
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...., Vice-President]. - The issue referred to the Larger Bench is whether mere debit in the DEPB Pass Book is sufficient for the eligibility of Modvat credit availed on the strength of Bills of Entry wherein the importers availed of the benefit of Notification 34/97-Cus. dated 7-4-1997 which exempts duties of customs (both basic plus additional) when the duty leviable on the goods is debited to the D....
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....ara 7.41 of the Exim Policy prescribed that the additional customs duty paid in cash on inputs cleared under DEPB Scheme can be adjusted as Modvat credit. 3. Appellants have taken credit of CVD debited in the Pass Book. It is the contention of the Department that Modvat credit is not admissible when CVD is paid by way of debit in the Pass Book for the reason that the assessee/appellant availed th....
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....redit is repugnant to Modvat scheme particularly when the Import Policy itself prescribes in Para 7.41 that only cash payment towards CVD can be taken as Modvat 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 up....
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....from payment of duty when the amount representing such duties is debited in the pass book. Thus a person who has not availed the benefit of the Notification and pays duties alone can take Modvat credit. When the importer pays duties of customs in part by cash, he is not availing the benefit of the said Notification to that extent. That is why Para 7.41 of the Exim Policy stipulates that Modvat cre....