COMMISSIONER OF CUSTOMS Vs. AKSA POLY BAGS LTD.

JUDGEMENT

(1.) NONE has represented, for the respondents. They have been served for today's hearing. No request for adjournment on their behalf has been received. Therefore we proceed to dispose of the appeal after hearing the Ld. Jt. CDR and going through the record.

(2.) THE facts are not much in dispute. The respondents were issued value based advance licences in terms of Export and Import Policy April 1992 to March 1997 for import of various materials for manufacture of goods meant for export under DEEC Scheme. They availed the benefit of Notification No. 203/92 dated 19.5.92 at the time of import of various goods through different bills of entry. But later on it revealed that they had also taken modvat credit on the imported inputs, in violation of the terms of Clause v(a) of the said notification. Accordingly, they were served with a show cause notice calling upon them to pay the customs duty as per law, being not entitled to the benefit of the above said notification. In reply to the show cause notice, the respondents pleaded that they had reversed the credit before 33.1.97 as well as paid the interest. The adjudicating authority i.e. the Commissioner of Customs accordingly dropped the proceedings by observing that the respondents were not liable to pay the customs duty, for having reversed the credit as well as deposited the interest. He had also condoned the delay on their part in making the payment of interest.

(3.) THE revenue has come up in appeal for questioning the validity of the impugned order of the Commissioner of Customs on the ground that he had no power to condone the delay in making payment of interest and that the breach of notification had been committed by the respondents and as such they were liable to pay the customs duty as per law. This very ground has been reiterated before us by Ld. Jt. CDR. He has also referred to the Apex Court judgment rendered in the case of Bharati Telecom Ltd. v. Commissioner of Customs, 2001 (78) ECC 665 (SC) : 2001 (134) ELT 327 (SC) to substantiate his arguments.