ORDER
J.H. Joglekar, Member(T)
1. On hearing Shri A.V. Naik, advocate for the applicants and Shri B.K. Choubey for the Revenue, it appeared that the appeal itself could be taken up for disposal. Both sides agreeing this was done, on granting wavier of pre-deposit of Rs.9,73,554.43 confirmed as duty and penalty of Rs.50,000/-.
2. Show cause notice dated 19.6.1998 was issued to the present appellants alleging breach of conditions of notification 203/92 and demanding the duty as mentioned above. The ground was that the manufacturer of the export products had availed of inputs stage credit. The importers did not file a formal reply but were present on the occasions when the case was posted for hearing. Shri Naik states that the appellants were not represented on the date of final hearing. He however maintained that immediately on realization of their error they had reversed modvat credit and that documentary evidence to that extent and effect was available with them. He submits that the reversal was made even before the Amnesty Scheme whereby on such reversion the imports were regular.
3. The evidence of reversal of credit would have to be examined by the jurisdictional officers. It would appear that in the light of such reversal the duty forgone may not be chargeable. To enable the Commissioner to appreciate the evidence now being placed on record, we allow this appeal and remand the proceedings back to the jurisdictional Commissioner for de novo adjudication. He shall permit the appellants to place on record the evidence. The appellants are directed to co-operate.
(Dictated in Court)