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2015 (11) TMI 515 - AT - Central ExciseDuty demand - Duty on die research and development charges recovered separately by the appellant by way of debit note - Held that:- In the show cause notice, the duty has been demanded from the appellant on the amount collected towards die development charges by the appellant during the impugned period. No effort has been made in the show cause notice for amortization of the cost of die and development charges toward the final product cleared by the appellant. Therefore, the show cause notice is defective. If, in the show cause notice the cost of die and development charges had been amortized, in that case definitely, the appellant was liable to pay duty, on amortized cost but same has not been done. - on the cost of amortization, the duty has not been demanded on the final product cleared by the appellant, therefore, the demand of duty on die development charges is not sustainable. - Impugned order is set aside - Decision in the case of Ashok Iron Works Ltd. (2004 (2) TMI 482 - CESTAT, BANGALORE) followed - Decided in favour of assessee.
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