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2023 (5) TMI 188 - AT - Central Excise
Revenue neutrality - Process amounting to manufacture - repacking of bulk packages of imported STPP into retail pack of 40/50 Kgs. in HDPP bags - excisable under Chapter sub-heading No. 28353100 of Central Excise Tariff Act, 1985 or not - Extended period of limitation - HELD THAT:- There is no dispute that all the goods on which the duty was demanded have been imported duly duty paid including CVD/SAD. In such case, if at all there is any duty liability of repacked goods or alleged clandestine removal or sales under dealer invoice or repacking job work, in all these cases, the appellant were entitled for the Cenvat credit in respect of the goods imported/ purchased by them. If on reconciliation it is found that duty is payable on the goods being deemed manufactured in terms of Chapter note 9 to note 28, in all such cases it prima-facie appears that the appellant is entitled for Cenvat credit on the goods procured and if such Cenvat credit is sufficient to adjust against the demand of output then the entire case is Revenue neutral and in such case, no further demand can be raised. However, this reconciliation exercise has not been conducted therefore in our considered view the matter needs to be reconsidered on this issue.
The respondent is required to submit reconciliation showing co-relation between the procurement and Cenvat involved therein and the sale of the goods involving duty payable thereon. After verifying these details, the Adjudicating Authority shall pass a fresh order keeping in mind the observation.
Matter remanded to the Adjudicating Authority for passing a fresh order within a period of two months from the date of this order - appeal allowed by way of remand.