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2012 (7) TMI 747 - CESTAT, MUMBAIDemand of duty – extended period of limitation - nylon crimped yarn - central excise duty on ad valorem basis – Held that:- Classification list was amended on 1.6.2001 by filing the revised declaration showing the ad valorem rate of duty in respect of nylon crimped yarn, but duty was not paid according to this declaration and thereafter this declaration was withdrawn on 11.6.2001. The correct rate of duty was applied by the appellants only from 1.10.2001. This only shows that they were aware of the correct rate of duty applicable on their products - contention of the appellants that duty is not required to be paid on Rs.5/- as twisting charges, it is found from the records that the goods in fact were manufactured on job work basis and they were charging Rs.15/- per kg. as job charges. Therefore, the entire Rs.15/- per kg. is required to be added in the value and their contention on the valuation is not acceptable. Cenvat credit – Held that:- W.e.f. 1.10.2001 the cenvat credit was admissible to them and prior to this date, they were not eligible for any credit since they themselves have withdrawn the letter under which they have requested for availing the credit - duty has rightly been demanded from the appellants in the show cause notice and accordingly the confirmation of the demand for the extended period is upheld - w.e.f. 1.10.2001, they are eligible to modvat/cenvat credit subject to filing of the duty paying documents in respect of the raw materials/inputs and verification by the departmental officers - matter remanded back to the adjudicating authority - appeals are allowed by way of remand
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