WESMAN HALVERSCHEIDT FORGINGS Vs. COMMISSIONER OF CUSTOMS, ACC,

JUDGEMENT

(1.) FOR reasons recorded below we waive the predeposit of duty of Rs.4,78,525/ - and penalty of Rs. 45,000/ - confirmed and imposed by the Commissioner of Customs on the ground that the condition of duty free clearance under Notification No. 203/92 was violated by the importers, and proceed to dispose of the appeal itself after hearing the Ld. DR and perusing the records.

(2.) THE importers were issued a show cause notice alleging that the provisions of Notification No. 203/92 CE which is applicable to value based advance licence was not fulfilled by them since they had availed input stage credit under Rule 57A of the Central Excise Rules, 1944. The demand was confirmed on this basis and penalty was also imposed. It is the contention of the appellants that they held a quantity based advance licence, and hence the provisions of Notification 203/92 are not applicable. Notification No. 204/92 is applicable to those who hold QBAL and in this Notification, the appellants submitted that there is no restriction regarding availment of input stage credit.

(3.) SINCE the claim of the importers was not made before the adjudicating authority who passed the order Ex -parte, we set aside the impugned order and remand the case for fresh decision to the Jurisdictional Commissioner who shall pass orders after extending reasonable opportunity to the appellants being heard and producing evidence in support of their claim. The appeal is thus allowed by remand.