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2010 (3) TMI 52 - HC - Central ExciseRelease of seized goods - Cenvat Credit – Goods purchased / imported – cenvat credit availed – subsequently sold after reversal of cenvat credit under rule 3(5) - Inspector of Central Excise, Puducherry proceeded to seize the components to the value of Rs.5,97,71,601/- on the ground that the company had availed credit on the components which could not be considered as inputs for the manufacture in or in relation to the final products and the said inputs were received only for the purpose of selling to the suppliers and therefore, the credit taken is not appropriate. – held that - i) On the petitioner furnishing a bank guarantee to the satisfaction of the third respondent for the value of the components seized by the respondents viz., Rs.5,97,71,601/- which should be kept alive till the adjudication process is completed, the third respondent shall release the seized goods as per the annexure to the impugned Mahazar; - ii) On such release, the respondents shall complete the adjudication process initiated against the petitioner company as per the statutory rules, by giving proper opportunity, within a period of three months from the date of furnishing of such bank guarantee and the consequential release of the goods seized, as stated above, however, subject to further right of appeal, if any, available to the petitioner against the said order. - iii) The adjudicating authority shall, without being influenced or untrammeled by the contents of this order, independently decide the issue involved in the matter on merit including the plea of the petitioner that the petitioner company is not liable for any action under the CENVAT Credit Rules.
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