ORDER
J.H. Joglekar, Member (T)
1. On hearing both the sides on the stay application, it appeared that at this stage the main appeal itself could be taken up for disposal. This was done after granting performa waiver of predeposit of duty of Rs. 65,580/- and penalty of Rs. 5,000/-
2. The appellant received a Value Based Advance Licence on 18.4.94. In pursuance of a request earlier made, the licence was converted into a Quantity Based Advance Licence on 1.3.95. In the meanwhile on 29.1.94 some goods were imported without payment of duty amounting to Rs. 65,580/-. Show cause notice was issued alleging that in the manufacture of export goods, input stage credit had been availed of thereby contravening the provisions of Notfn. No. 203/92-Cus. The importers placed DGFT letter dated 21.10.94 witnessing conversion from Value Based to Quantity Based. The Commissioner held that the letter was in the form of a query and did not certify the conversion. On this ground, he confirmed the duty and imposed the penalty.
3. Shri S.R. Narayan, the ld. Consultant shows us the letter. The annexure thereto indicated the fact of conversion. he submits that this letter would have the effect of conversion from the date the licence was issued and therefore, the earlier import made should also be treated as made under the Notfn. No. 204/92-Cus.
4. Shri George on the other hand states that the conversion would affect the imports made after the date of conversion.
5. We have considered the rival submissions. On perusal of the letter we are satisfied that the DGFT did permit conversion on the licence form Value Based to Quantity Based. It appears that the ld. Commissioner had not seen the letter in its entirely and had, therefore, passed a wrong order.
6. Ordinarily, we could have allowed this appeal at this stage on perusal of the licence. But from the show cause notice, we see that there are some imports made after the conversion and some imports were made before the conversion. The Commissioner will have to secure the opinion of the DGFT as to retrospective application of the amendment and then decide the issue before him. He will after allowing the importers to make their submission pass appropriate orders.
7. The appeal is allowed by way of remand.
(Dictated in Court)