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2017 (10) TMI 1178 - AT - Central ExciseDemand of differential duty - finished goods and rejects cleared to DTA - Held that: - undisputedly the appellant had cleared the rejected yarn and waste in DTA in excess of 50% of FOB value without permission of the Development Commissioner, accordingly, differential duty was demanded in accordance with proviso to Section 3 (1) of the CEA, 1944 - the issue is now covered by the judgement of the Hon’ble Supreme Court in Sarla Performance Fibers Ltd’s case [2016 (6) TMI 352 - SUPREME COURT] and since the issue pertain to the period prior to the amendment to Section 3 of CEA, 1944 w.e.f 11.05.2001, differential duty calculated taking into account the formula prescribed under proviso to Section 3 (1) of Central Excise Act, cannot be sustained. The appellant had used raw-materials in the manufacture of said rejected yarn and waste therefore, the demand on the raw-material also cannot be sustained. Appeal allowed - decided in favor of appellant.
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