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2015 (11) TMI 465 - AT - Central ExciseReversal of CENVAT Credit - determination of price of exempted goods under Rule 6 of CCR - For the purpose of reversal of 10% whether the basic contract price should be taken or price plus 10% reversal collected should be taken - Held that:- From the contract documents that there is specific price fixed for sale of the goods and in that price there is no addition of this 10% in the form of the price. There is clause in the purchase order that against all the reversal of 10% customer shall pay the same amount to the appellant. In view of this fact contract price is the price and the same should be taken for calculation of 10% reversal required under 6(3)(b). As regard the 10% reversal made by the appellant and even though the same was collected from the customer the same was not retained by the appellant as the same was debited in their Cenvat credit account, therefore in this fact, it could not be said that 10 % reversal is part and parcel of the price of the goods. - in Rule 6(3) of CCR, 2004, prior to 1/4/2008 the 10% reversal is required to made on “price” of the goods and subsequent to 1/4/2008 it was amended and according to which 10% reversal was to be made on the “value” of the exempted goods. It was also clarified that value which is determined as per Section 4 or 4(A) of Central Excise Act, 1944, read with Rule made under. Prior to 1/4/2008 the price of which 10% reversal was to be made had no relevance to the Section 4 or 4(A) and it is also fact that term “price” mentioned in the Rule 6(3)(b) it was not defined in the Cenvat Credit Rules. In this position, I am of the view that price is to be taken as provided in the contract and as per contract; price does not include 10% reversal and collection thereof. Therefore 10% reversal made by the appellant on basic contract price is correct and legal. - Decided in favour of asssessee.
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