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2018 (10) TMI 1322 - CESTAT AHMEDABADProcurement of inputs from a DTA unit under CT-3 procedure which was later returned back to the original supplier, on being found unfit for consumption - case of the department is that once the non duty paid under CT-3 received by the 100% EOU there is no other option accepted either to use in the production or to discharge the Excise duty accordingly on the returned goods demand was confirmed. Held that:- In the transaction as per Rules, 6 provision thereof there is a clear proviso that in case the assessee found the goods to be defective or damage of un suitable or surplice to the needs of the manufacture. He may return the subject goods to the original manufacturer of the goods. According to this provision duty cannot be demanded from the appellant. As per the provision of Rules, 6 of Central Excise Confessional duty Rules, 2001, the demand of interest and penalty is not sustainable - appeal allowed - decided in favor of appellant
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