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2017 (5) TMI 603 - CESTAT NEW DELHI (LB)Reversal of CENVAT credit - Rule 6(3)(b) of the CCR, 2004 - whether reversal of 10% of the price of the exempted product can be considered as 'any other taxes'? - Held that: - applying broadly the proposal of the taxation, cost of the exempted goods needs to be considered as a whole and claim of reduction for 10% of credit towards consumption of the common inputs cannot be upheld as the price of exempted goods is not determined as per provisions of law - the reversal of 10% of the price of the exempted good is not for maintaining separate account of inputs used in the manufacture of exempted and is an option extended and exercised, cannot be held as compulsory exaction of money for the purpose of public. Payment of an amount at the rate of 8% or 10% u/r 6(3)(b) of the CCR, 2004 is not a duty, not a tax and hence cannot be deducted from the price of the exempted goods cleared for by consuming cenvated inputs - appeal allowed - decided in favor of assessee.
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