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2017 (2) TMI 886 - AT - Central ExciseReversal of credit / payment of duty - removal of inputs as such - Valuation - when the inputs or capital goods, on which the credit has been taken are cleared as such from the factory, whether the manufacturer of final products shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal? - Held that: - the concept of deemed manufacture is only for the purpose of procedure to be followed for removal of input since the removal of input also attracts duty - But it is the fact that the input is not manufactured by the appellant whereas the same is manufactured by the supplier therefore as regard the concept of valuation and rate of duty of the input for the purpose of charging duty, it is that value and rate of duty which was applicable to the manufacturer supplier of the input. Merely because deeming fictions is given in rule for the purpose of procedure it does not empower to Revenue to charge the duty over and above the duty equivalent to the Cenvat Credit availed - duty paid by the removal of inputs is in order - appeal allowed - decided in favor of appellant.
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