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2023 (7) TMI 45 - CESTAT CHENNAIApplicable rate of duty for removal of any normal goods in terms of sub-section (2) to Section 3 or Section 4 or Section 4A of the Central Excise Act, 1944 - change in the rate of duty applicable from the time when the machine was sent for exhibition to the time when it was actually sold - demand of differential duty equivalent to the CENVAT Credit availed when the goods were returned to the factory - HELD THAT:- There are no dispute by the Revenue as to the fact or the contention of the appellant that upon receipt in the factory from the exhibition, the product had lost its originality or that the same required reprocess, etc., to bring it back to the original shape and only thereafter that the machine in question could be sold or removed as such. That means the product was brought back into the factory only to be re-processed and this claim of the appellant was never disputed by the Revenue - the appellant carried out the required process of quality inspection and replaced the Servo Driven Filler with a Pneumatic Driven Filler. Further, the original machine that was made, was sent to the exhibition, which was brought back and after elapsing of some time, the machine was sold and cleared like any other excisable goods. That being the case, there are no contravention of the Valuation Rules by the appellant, as an important part of the machine sold has been replaced with a less advanced component, slight reduction in the value of the machine sold is found to be normal. The impugned order demanding differential duty of Rs.1,09,489/- is not sustainable and so, set aside. Accordingly, the penalty imposed is also set aside - Appeal allowed.
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