MAHARAJA INTERNATIONAL LTD Vs. COLLECTOR OF C. EX.

JUDGEMENT

(1.) THE appellants are manufacturers of various domestic electrical equipments. They had taken modvat credit in respect of certain materials produced by them on 'High Sea' sales' basis. The parties who had imported the goods in question were having special import licences to cover the same and they could sell them to actual users like the appellants. The goods after clearance were transferred to the appellants and the triplicate copies of the relevant bills of entry were endorsed by the respective importers in favour of the appellants. Such endorsements were to the effect that the entire consignments covered by such bills of entry have been delivered to the appellants directly from the port of importation and that no refund of countervailing duty paid has been claimed nor will it be claimed. The appellants thereafter filed the copies of the bills of entry with the Central Excise authorities with a declaration that they intended to avail the facility of countervailing duty credit under Rule 57 -A. They were issued a show cause notice dated 22 -4 -1992 alleging that they had wrongly availed the credit of specified duty on the basis of bills of entry which were not in their name. The case was adjudicated by the Collector vide his order dated 16 -10 -1993. Hence, this appeal.

(2.) SHRI A.S. Sunder Rajan, learned counsel for the appellants states that in a series of decisions the Tribunal has upheld the availment of Modvat credit on the strength of endorsed bills of entry, One such decisions has been reported in 1995 (10) RLT 650 in the matter of Krishna Strips Ltd. v. CCE. If the stand taken in the impugned order were to be accepted as correct, that would nullify the special import licences scheme which permits importers to import goods for "stock and sale". It would also then necessitate all imports of such goods to be directly effected by the manufacturers themselves which may not be a practicable proposition and which will interefere with the pattern of trade and commerce. In the present case, the goods were specifically ordered by the concerned importers as per the requirements of the appellants and the goods came to be imported accordingly. He pleaded that the impugned order be set aside.

(3.) HEARD Shri Mewa Singh, learned SDR by way of reply to the submissions made by the learned counsel.