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2019 (9) TMI 1542 - AT - Central ExciseValuation - waste arising during the course of manufacture of DOPB films which were captively used by the appellant for manufacture of reprocessed granules - exemption under Rule 8 of Valuation Rules, 2000 - HELD THAT:- W.e.f. 1-12-2013, there is a change in the provision of Rule 8 of the Valuation Rules and as per the said amendment, the appellant is required to pay the duty on the basis of cost of production + 10%. Admittedly, whatever duty is paid by the appellant same is entitled for Cenvat credit, therefore, it is a revenue neutral situation. Moreover, the appellant claim is that they are entitled as exemption of Notification No. 67/95, dated 16-3-1995 and as per Rule 6 of Cenvat Credit Rules, 2004, the appellant is paying 6% of the value and exempted reprocessed granules (as they are not maintaining separate account of re-issued in manufacture of DOPB films which are not exempt from duty) the benefit of exemption under Notification No. 67/95 cannot be denied on the ground that such waste and scrap is used in manufacture of exempted granules. The appellant has paid the amount @ 6% of exempted granules used captively for manufacture of reprocessed granules which were partly cleared on payment of 6% of the value of exempted goods or used in manufacture of DOPB films and is entitled for benefit of exemption of Notification No. 67/95, dated 16-3-1995 - There are no merit in the impugned order, the same is set aside. Appeal allowed - decided in favor of appellant.
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