HEMANT PLASTICS CHEMICALS LTD. Vs. CC (GENL.), MUMBAI

JUDGEMENT

(1.) DUTY of Rs. 8.06 lakhs approx. has been demanded, and penalty of Rs. 16.12 lakhs imposed on the ground that the goods that the applicant imported were not entitled to the benefit of notification 203/92, for the reason that one of the conditions, subject to which exemption in the notification is availed, that Modvat credit should not have been taken in the manufacture of exported goods, had been contravened. The contention of the counsel for the applicant is that the demand is barred by limitation. The extended period contained in the proviso under sub -section (1) of Section 27 of the Act, which has been invoked in the notice, would not be available to the department. The departmental officers were aware of the fact that Modvat credit had been taken.

(2.) At this stage, we find this argument difficult to accept. It is not contended that during the importation which took place after export was complete, the applicant did not bring to the notice of the department that Modvat credit has been availed of. In these circumstances, we accept the offer made by the counsel for the applicant to deposit the duty within two months from to day. On such deposit, we waive deposit of the penalty and interest (which has not been quantified) and stay their recovery. Compliance on 21.11.2001.