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2015 (2) TMI 655 - CESTAT NEW DELHIWaiver of pre deposit - discrepancy in ER-2 returns and RG-1 register - Debonding of unit - Conversion to DTA unit - Held that:- The duty demand of ₹ 32,83,532/- has been confirmed on the stock of the material valued at ₹ 92 lakhs alleged to be the stock as on 1.4.2009 when the unit was 100% EOU. These stock of material shown in trial balance sheet for the period from 1.4.2009 to 31.7.2009 has been assumed by the Department to be the stock of finished goods. Accordingly the duty has been demanded on this stock on the ground that at the time of de-bonding, duty on the entire stock of finished goods was payable. However, it is seen that as per Superintendent s verification report submitted to the jurisdictional Assistant Commissioner, there was no stock of finished goods in the factory as on 31.3.2009 and also there was no stock of raw materials procured without payment of duty as on 31.3.2009.The trial balance sheet placed on record simply mentions the stock of material valued at ₹ 92 lakhs as on 1.4.2009. Thus, from this entry in the trial balance sheet, it cannot be presumed that this stock entry was of finished goods, as the same could be duty paid raw materials or packing materials etc. The appellant s plea is that prior to de-bonding, they had started procuring packing material adhesives from domestic services etc. and had stopped procuring duty free raw materials. We are , therefore, of the view that pre-deposit of 25% of the duty demand was not justified. Matter remanded back - Decided in favour of assessee.
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