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2014 (12) TMI 410 - AT - Central ExciseReversal of CENVAT Credit - whether the reversal of the credit taken is sufficient or the appellant should discharge duty liability on the value of such goods cleared in terms of sub-rule 1(c) of Rule 57AB - department was of the view that similar parts were cleared from the appellant's warehouse for sale purposes and, therefore, the value of such goods was available and the appellant should have discharged duty liability on such value and not by merely reversing the credit actually taken - Held that:- As regards the National Engg. India Ltd. (2010 (4) TMI 674 - CESTAT, NEW DELHI) relied by the Revenue, we note that the facts are different from those involved in the present appeal. In that case, the goods though cleared on reversal of credit were actually resold by the sister concern and, therefore, a value was available for payment of duty. It was in that context, it was held the price of the goods sold should be basis for payment of duty and mere reversal of credit would not suffice. In the present case, there is no sale or resale of the goods. The goods are cleared from the factory to meet the warranty obligations free of charge. Therefore, the ratio of the said decision would not apply. It is in this context, one has to see larger Bench's decision which dealt with an identical matter in the case of Eicher Tractors [2005 (9) TMI 340 - CESTAT, NEW DELHI] and held that reversal of credit would suffice and there is no need for re-determination of value in view of the Board's Circular dated 25.4.2005 - Decided in favour of assessee.
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