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2017 (12) TMI 265 - AT - Central Excise100% EOU - N/N. 53/97 customs dated 3-6-1997 and 1/95-CE dated 4-1-1995 - allegation was made that certain quantity of final product manufactured out of imported input has been cleared to DTA availing exemption under N/N. 8/97. Therefore demand of duty was made - imported Aniline oil used in manufacture. Held that: - The report of the Indian Institute of Material Management does not state that all the clearances made to DTA were not out of purely indigenous material. All it says is that imported Aniline oil has been consumed in excess of that which is required for production of exported goods. It does not automatically mean that entire quantity of goods manufactured and cleared in DTA has been manufactured out of mixed or imported Aniline Oil. The order of the commissioner in so far as it relates to fact that imported and indigenous aniline oil not been stored separately is upheld. The Tribunal order which is specifically directed to apply the FIFO method to ascertained the quantity of finished goods manufactured wholly or partly from imported raw material. The fact that Tribunal had directed to apply the principle of FIFO method, just because material got mixed, it cannot be said that entire quantity of finished goods was manufactured out of mixture of imported and indigenous raw material. The FIFO method has been suggested by the Tribunal to segregate the quantity relatable to finished goods manufactured out of indigenous and imported raw material - reference made by IIMM was not proper - matter remanded for getting entire data of aniline oil to arrive at quantity of finished goods manufactured and cleared in DTA wholly or partly from the imported raw material. Appeal allowed by way of remand.
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