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2016 (12) TMI 142 - CESTAT MUMBAIDeemed credit - Notification No. 29/96-CE - fabric is processed or not - whether central excise duty is payable on an additional charge received by main appellants when appellant was paying excise duty on the processed goods on the basis of selling price of merchant manufacturer? - Held that: - The claim of the Revenue that main appellant has erred in availing the benefit of deemed credit under Notification No. 29/96 is without any merits - mere washing of grey fabrics before being delivered to the main appellant for further processing will not amount to a process carried out on the fabric and the said fabrics cannot be called as processed fabrics. In view of this, we hold that appellant is eligible to avail the benefit of Notification No. 29/96. As regards the issue of valuation, we note that that is no dispute as to the fact that the main appellant had discharged the Central Excise duty on the processed fabrics based upon the value at which the merchant manufacturer sells the goods in the market. We also perused the price list filed by the appellants, countersigned by the merchant manufacturer and also the declarations filed by the merchant manufacturer before the lower authorities wherein it is categorically declared that the prices at which the said processed fabrics are sold in the market, the job worker has to discharge the Central Excise duty. Factually, this position is undisputed by the lower authorities. Since the Central Excise duty payable on the processed fabrics is paid on the value at which the said fabrics are sold by merchant exporter, the question of main appellant getting additional amounts/charges are of no consequence as even if these are included, they may not exceed the value as declared by the merchant manufacturer as it is a common knowledge that sale price will undoubtedly, include all the expenses incurred by merchant manufacturer for manufacturing of the processed fabrics. Appeal allowed - decided in favor of appellant.
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