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2010 (4) TMI 674 - AT - Central ExciseValuation – inputs – A plain reading of the rule 3(4), therefore, would reveal that in a case where the goods are procured for consumption thereof in the final dutiable products by availing Cenvat credit in respect of the duty paid on such goods, if the same goods instead of consumption thereof for manufacture of dutiable final products are transferred to a third party, then the manufacturer has to pay an amount equal to the duty of excise leviable on such goods at the rate prevalent on the date of removal of such goods and for that purpose, the value of such goods is to be determined in terms of Section 3(2) or Section 4 or Section 4A of the said Act, as the case may be.Removal of inputs on reversal of credit to sister concern who resold it to another dealer - Undoubtedly records disclose that at the time of transfer of the goods in favour of the sister concern, the appellants reversed the credit, which was availed on the said goods. It is not the case of the Department that such reversal of the credit has in any manner reduced the liability of the appellants or that there was any act or conduct on the part of the appellants which could reveal intention to evade the duty. Besides, as rightly pointed out by the learned advocate for the appellants, the assessee was all the time harping on the decision of the Larger Bench to justify non-leviability of the duty amount confirmed under the impugned order. In such circumstances, in our considered opinion, the appellants are justified in contending that, it is not a fit case for imposition of penalty.
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