BALAKRISHNA INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) ALL the appeals are being decided by a common order as the issue involved is identical in all of them. Some of the appellants are exporters of excisable goods, against advance licences so procured by them from DGFT. The said advance licences are subsequently invalidated, against which they can procure inputs from the indigenous manufacturers, without payment of duty in terms of Notification No. 44/2001 -C.E. (N.T.), dated 6 -6 -2001 issued under Rule 19 of the Central Excise Rules. As the exporters have procured inputs from the other suppliers who have cleared the goods on payment of duty, instead of clearing the same without payment of duty in terms of the above notification and against the invalidated licences, Revenue had initiated proceedings against all the persons including the exporters as also the suppliers of the inputs.

(2.) FOR better clarity, we refer to the facts involved in the case of M/s. Balkrishna Industries Limited, who is an exporter. As M/s. Balkrishna Industries Limited is manufacturer of tyres and the entire production of the said manufacturers is being exported by them against advance licences, which advance licences so procured by them are subsequently invalidated. Against such invalid advance licences, they were entitled to procure duty free raw materials from indigenous manufacturers, subject to following certain procedures as envisaged in Notification No. 44/2001 -C.E. (N.T.). Such invalidated advance licences were given by the manufacturers to the supplier of various raw materials. The supplier instead of availing the benefit of notification, in question, which is subject to observations of a procedure, cleared their raw material on payment of duty. The duty so paid by the supplier was availed as a credit by M/s. Balkrishna Industries Limited.

(3.) LEARNED DR appearing for the Revenue submits that if the input suppliers were not to use the invalidated licences, there was no purpose for receiving the same from the manufacturer exporter. He submits that the said practice has been going on for a long period and there seems to be some mala fide on the part of the input supplier to procure the invalidated licences and not to use the same subsequently. However, he fairly agrees that the issue stand decided by the decision of the Tribunal, but submits that the said decision has been appealed against before the Hon'ble Bombay High Court, but there is no stay on the same.