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2017 (7) TMI 279 - CESTAT NEW DELHIRate of duty applicable on subject goods - P&P medicaments - whether rate of duty should be the rate of duty of the day, when the goods were imported or it should be the rate of duty of the day, when the goods were removed/ destroyed in the factory? - Held that: - In this case, after the manufacture of goods and when their shelf life expired, the appellant was not in a position to clear / remove them even for home consumption. Therefore, the appellant chose to destroy the subject goods. They have paid duty of Central Excise @ leviable on the day of destruction - Once the goods have been allowed to reach the factory premises of the appellant under Notification No.94/96 dated 16.12.96, the significance of the day of reimportation of the goods is not valid for charging the duty. If the appellant removes such goods for home consumption, by taking necessary permission if required, rate of duty would be applicable for the day when the goods are to be removed for home consumption. The demand of duty would be at the rate as applicable on the day of destruction, when the appellant had chosen to destroy the goods and made the payment of duty to the department. When there is no dispute on the fact of payment of duty made by the appellant payable on the day of destruction there is no further liability of payment of duty of Central Excise against the appellant - once we have decided that the appellant has rightly paid the duty on the day of destruction of the goods there cannot be any liability of interest as well as liability of penalty against the appellant. Appeal allowed - decided in favor of appellant.
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