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2015 (10) TMI 1680 - AT - Central ExciseValuation - Calculation CENVAT credit reversed under Rule 6(3) and recovered from the customers – The Department, was of the view that the assessable value for the purpose of payment of the amount under Rule 6(3) would also include the amount of 5% / 10% of the sale price being recovered by the appellant from the customers and the appellant would be liable to pay an amount @ 5% / 10% on the extra amount of 5% / 10% being recovered from the customers - Difference of opinion - Majority order - Held that:- The value of the goods works out to equal in both the cases i.e. dutiable / exempted goods. 5% / 10% is payable as per Rule 6(3) of the value of the said goods which the appellant has already paid. Therefore, the analogy drawn by the Revenue is totally misconceived that the appellant is required to pay 5% / 10% of the sale price of goods as per Rule 6(3) of the Cenvat Credit Rules 2004. - Appellant is paying 5% / 10% of the value of the goods to the Revenue as per Rule 6(3) and not claiming any deduction of 5% / 10% on the said amount. Therefore, appellant is not required to pay 5% / 10% to the Revenue on the amount recovered from the buyer on account of amount paid to the Revenue as per Rule 6(3) of the Cenvat Credit Rules 2004. In these circumstances, I take support of the decisions in the case of Unison Metals Vs. CCE-[2006 (10) TMI 171 - CESTAT, NEW DELHI] and in the case of CCE Vs. Kisan Sahkari Chini Mills Ltd.-[2001 (8) TMI 119 - SUPREME COURT OF INDIA] to hold that the recovery of 5% / 10% amount from the customer which already stand paid to the Department cannot be held to be liable to be added in the assessable value of the goods. - Decided in favour of assessee.
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