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2011 (6) TMI 618 - CESTAT, MUMBAIJob work in textile industry – the appellants (textile processors) were directed to load their job charges by 15% towards notional profit vide Trade Notice No. 20/2001 dated 24.03.2001 – Held that:- Trade Notice was clearly in contravention of law and against the direction of the Board issued vide Order No. 24/14/93/Cx Dated 31.12.1993 wherein the Board had clarified that in respect of job work, the assessable value shall consist of only the cost of materials at the premises of the job worker + job charges. Commissionerate kept on insisting to load trade/job work charges by 15%. Such excess payments have to be necessarily adjusted towards the short payments alleged by the department on the very same transactions. demand has to be re-computed taking into account the excess payments made by the appellants on account of additional of 15% notional profit and we order accordingly. Excess payments made by the appellants towards shrinkage of fabrics - Trade Notice provided for a shrinkage of 4.2% whereas the appellants took shrinkage at 6.2% - Held that:- Trade Notice also provided that if the shrinkage is substantially more than 4.2% as provided in the Trade Notice, actual shrinkage should be taken into account. appellant-assessee is entitled to the adjustments on account of addition of 15% notional profit and also on account of shrinkage which was taken into account more than the actually incurred shrinkage. After making such adjustments, the department has to determine whether any demand towards short levy exist and only to that extent the department can make legitimate claim from the appellant-assessee. Denial of CENVAT credit – 'deemed credit' - Held that:- learned adjudicating authority has denied the deemed credit facility for the entire period even in respect of fabrics cleared under invoices wherein duty liability has been discharged correctly. Such a denial is not provided for in the Notification or in the law. adjudicating authority directed to re-compute the deemed credit wrongly availed only in respect of those quantum of fabrics specified under invoices in respect of which there is short payment of duty and not on the entire quantum of fabrics cleared during the material period. case remanded back to the original adjudicating authority. Appeals are thus disposed of by way of remand
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