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2014 (2) TMI 1203 - AT - Central ExciseDenial of CENVAT Credit - credit of the CVD and used it for payment of duty on the repaired transformers cleared from the appellant’s factory - Held that:- Admittedly, the duty was paid by the appellant on the full value of the transformer including the value of the damaged parts. It is not the case of the Revenue that parts were imported separately and duty was paid on the separate parts. It is a complete transformer, which was imported on payment of duty and it is the complete transformer which was subsequently converted into a new transformer, which was cleared on payment of duty. As per the provisions of Rule 3 (1) (vi) of CENVAT Rules 2001, an assessee is entitled to take the CENVAT credit of the additional duty on customs leviable on the goods imported and paid under Section 3 of the Customs Tariff Act, 1975. The Bill of Entry filed by the appellant clearly reveals the payment of CVD on the complete transformer. Merely because on account of under-going through sea-voyage from India to Holland and back, some of the parts might have got damaged requiring re-attaching, re-conditioning/repair cannot be made a ground for denial of the duty paid on the said parts. Even at the cost of repetition, I would like to observe that it is not the parts, which were imported by the appellant but the complete transform and at the time of payment of CVD on the complete transformer, including the damaged parts, the customs authorities did not object to payment of duty on the damaged parts. As such, I find no justification for denial of the credit. - Decided in favour of assessee.
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