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2015 (5) TMI 411 - AT - Central ExciseWaiver of pre deposit - Denial of CENVAT Credit - final product is exempted under Sl. No. 11 of Notification No. 3/2006-CE dated 01.3.2006 - Held that:- Sl. No. 11 to Notification No. 03/2006-C.E. dated 1.3.2006 exempts 'all goods' falling under CTH 1517 9020 or 1518 (other than margarine and similar edible preparation).Chapter heading 1517 10 covers Margarine, excluding liquid margarine. Peanut butter is specifically covered Tariff 15179020 under the category "other". This is one of the grounds taken by the Revenue for differentiation between 'margarine' and 'peanutbutter' and to take the view that both are different. The appellant's stand is that both the products are interchangeable for end use and therefore, are to be treated as similar to each other. The Revenue has also taken a view that both the products are obtained from different origin; margarine is a butter derived from animal fats whereas the peanut butter is plant fat. - In any case, the entire exercise would have been revenue neutral but for the fact that in this case, there happened to be a higher rate of duty on the imported goods and the value addition is not sufficient and as a result, the amount of tax payable on the final product is less than the credit available. Even then it is seen that out of the credit taken, an amount of ₹ 83,01,243/- paid by the appellants has to be considered as amount reversed. Therefore, in any case, the demand could not have been more than ₹ 1.35 crores. Having regard to the complication involved and different interpretations involved, we consider that if the appellant deposits an amount of ₹ 10 lakhs, that would be sufficient for the purpose of hearing the appeal. - partial stay granted.
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