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2013 (12) TMI 752 - AT - Central ExciseAffixation of labels/MRP before clearance – Payment of CVD on MRP basis – Held that:- The appellant undertook the process of affixing labels/MRP before the goods were cleared by the Customs and the goods were cleared on payment of CVD on MRP basis - MRP on which CVD was discharged is the same as that adopted for excise duty liability - the appellant has discharged the CVD liability on MRP basis, even it is assumed that the appellant is liable to pay duty, the appellant would be eligible for the benefit of Cenvat Credit of CVD paid and the CVD paid would be more or less the same as the excise duty demand – thus, insistence of pre-deposit to secure the interests of Revenue does not arise. As regards the duty demand of Rs.3.3 crore in respect of goods where CVD liability was discharged on transaction value basis, there may be some merit in the contention of the revenue that the activity of affixing labels and MRP enhancing the marketability of the products - the appellant would be eligible for Cenvat Credit of CVD paid on the imported goods which is approximately of Rs.1 crore - thus, additional duty liability on account of re-labelling, MRP affixation would be approximately Rs.2.3 crores - the appellant directed to make a pre-deposit of duty of Rs.2.3 crore – upon such submission rest of the duty to be stayed till the disposal – Partial stay granted.
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