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2009 (10) TMI 349 - AT - Central ExciseDemand-valuation- The appellant, a manufacturer of excavator loaders and earthmoving machinery have been availing the Cenvat credit of the duty paid on inputs and capital goods. They were selling Escorts JCB 3D hydraulic excavator loader at a particular price and paying the duty. The Department has taken the stand that the kits supplied along with the excavator are collection of inputs on which Cenvat credit has been taken and therefore, the appellants should have paid the duty on the inputs prior to 1-3-2003 and reversed the amount equal to the Cenvat credit taken on inputs for the period from 1-3-2003. Accordingly, original authority confirmed the demand of Rs. 69,02,148/- and also imposed equal amount of penalty under Section 11AC. Commissioner (Appeals) upheld the order of the original authority. Held that- . we are of the considered opinion that the excavator loader along with standard fitments and accessories would be assessed separately and the duty liability or the Cenvat credit on the kits should be determined separately, In other words, the total value requires to be apportioned between the value of excavator and value of spare parts /extra spare parts. This exercise has not been done by the original authority. To enable the same, we set aside the orders of the lower authorities and remand the matter to the original authority. In the facts and circumstances of the case, we do not find that this is a case involving any intention to evade excise duty. Therefore, no penalty is warranted and accordingly, the same is set aside. The appeal is allowed by way of remand on the above terms.
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