RINL Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) THIS appeal arises from OIO 10/05 -06 dated 10.8.05 by which the Commissioner of Central Excise has directed the assessee to reverse credit of Rs. 4,45,61,623/ -. He has imposed a penalty of Rs. 25 lakhs in terms of Rule 13 of Cenvat Credit Rules.

(2.) THE short facts of the case are that the revenue issued show cause notice to the appellant, a PSU unit alleging that they had obtained 19 Quantity Based Advance Licences (QBAL) under Notification No. 204/92 -Cus dated 19.5.92 and 15 Value Based Advance Licences (VBAL) under Notification No. 203/92 -Cus dated 19.5.02 for import of materials without payment of duty. They had taken credit on inputs under Rule 57A of CE Rules that have gone into the manufacture of final products exported in discharge of export obligation under the above noted licences while effecting exports and imported materials without payment of duty.

(3.) THE department's contention is that they are not eligible to avail credit on inputs under the Notification and the Rules. The respondent's contention is that this very issue was subject matter of earlier proceedings before the Tribunal and the Tribunal by their final order No. 75 -76/04 dated 2.1.04 held that they were eligible for availing the Cenvat credit on the inputs utilised in the manufacture of goods which are exported in terms of the Notification cited supra. Therefore they had retaken the credit as a consequence of the Tribunal's order. The revenue has proceeded to again issue show cause notice directing them to reverse the same which according to the appellants is barred by principles of constructive res -judicata and rely on the ratio of the following judgments.