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2016 (1) TMI 763 - AT - Central ExciseDemand of differential duty on account of non-inclusion of AED (T&TA) in the cost of Grey Fabrics for excise purposes - inclusion of AED (T&TA) in the cost of Grey Fabric is sent for job work when the same is available as credit to the appellant - Held that:- It is clear that in the case under consideration of CCE, Pune vs. Dai Ichi Karkaria Ltd [1999 (8) TMI 920 - SUPREME COURT OF INDIA] the assessee can utilize the credit taken to pay excise duty on the finished product, as such, the Hon’ble Apex Court observed in such situation the duty which was already credited and which can be used for discharging duty on final product need not be included in the cost. In the present case we find the appellant though availed the credit as permissible by the law, cannot utilize the same as the finished product Grey Fabric is not liable to AED (T&TA). As such, the said duty paid on inputs will become cost to the appellant, which cannot be passed on by way of utilization of the said credit for discharging the duty on finished product. This much is clear from appellant’s own treatment of the said credit as expenditure in the balance sheet for the year 2003-2004. Their not showing the said duty as expenditure in the next year will not affect the fact the AED paid has to be observed as a cost in view of the fact that they are not able to utilize the same - Decided against assessee.
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