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2017 (10) TMI 1031 - CESTAT NEW DELHI100% EOU - de-bonding of unit - Revenue entertained a view that the appellant/assessee did not discharge the full duty liability in respect of goods lying in stock as well as work in progress stock as on the date of de-bonding - N/N. 23/2003-CE - Held that: - though excise duty is liable on the goods manufactured or produced in India, the payment of such duty is mandated only at the time of their clearance from the factory. We do not find any justification, with legal basis, to confirm and demand Central Excise duty on any goods which are yet to reach a finished stage for entry in the RG-1 or before their actual clearance from the manufacturing unit. We could not get any legal basis for such confirmation of duty in the impugned order. The appellant/assessee categorically asserted that the work in progress stock has been manufactured using indigenous cotton on which no excise duty or any other duty benefit has been availed. No other imported or indigenous consumables were used in the manufacture, on which custom or excise duty is forgone. On this factual basis, we find no justification to confirm any duty liability on work in progress stock in terms of Section 3 (1) or the proviso of the said section of the Act. Appeal allowed - decided in favor of appellant-assessee.
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