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2015 (11) TMI 462 - AT - Central ExciseAvailment of CENVAT Credit - sale of finished goods lower than the price of inputs (raw material) - While clearing the said goods, they treated the same as waste of ferrous of iron and steel and classified the same under sub-heading 7204.90 and paid the duty accordingly - department is considering the goods removed by them as input cleared as such - Held that:- the classification of the goods followed by the appellant is incorrect and is required to be rejected. The goods would be classifiable under the respective headings and would be chargeable to 15% duty as proposed in the show cause notice. Regarding valuation - When the goods were purchased by them, they were of bigger dimensions and the goods sold by them are of smaller dimensions and of varying sizes. In view of such position, such goods will fetch far less value compared to the goods purchased by them. The invoices of the goods sold by them are already available with the department and form part of the demand notice. We do not see any reason not to accept the value declared in such invoices. The Revenue has also not produced evidence that the appellant has collected any amount over and above the value declared in such invoices. In view of this position, the invoice value may be accepted and duty computed @ 15% on the declared value. Extended period of limitation - Held that:- whole case was made based upon an information and after visit to the unit. From the declaration filed by the appellant, it is not possible to make out that what they were selling was small sizes angles and plates. In view of the said position, in our view, invoking the extended period was correct. - invoice value may be accepted, the duty liability will required to be recomputed by the adjudicating authority. Further, the interest and penal liability will also change - Matter remanded back - Decided partly in favour of assessee.
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