2011 (9) TMI 650

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....ion No.6/2000-CE, dt.1.3.00, wherein they were to reverse the MODVAT Credit availed on duty paid. It was noticed by the lower authorities that during the period November 2003 and December 2003, the appellants paid Central Excise duty of Rs.93,484/- (Rs.Ninety Three Thousands, Four Hundred and Eighty Four only) [Rs.64,479/- Rs.Sixty Four Thousands, Four Hundred and Eighty Four as SED and Rs.29,005/- Rs.Twenty Nine Thousands and Five as AED (T&TA)], through RG23C Part II for clearances of finished goods/inputs, and during the same period___________ input by short paying duty cleared on the finished goods by under-valuing the goods due to which there was a short payment of Central Excise duty.  Accordingly, a Show Cause Notice dt.09.11.04....

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....bted, the same cannot be discarded. For this proposition, he relies upon the following decisions: i) CCE Vapi Vs Hindustan Rubbers 2011 (269) ELT 376 (Tri-Ahmd) ii) Maruti Udyog Ltd Vs CCE New Delhi 2002 (150) ELT 1020 (Tri-Del) 4. As regards 3rd demand of removal of inputs, which deteriorated long standing, it is his submission that the inputs were lying for more than 5 years and that the said inputs could not be sold at their original price, on which it was purchased.  It is his submission that once the inputs are deteriorated, they cannot be recorded as removal as such from the factory.  In view of the above, it is his submission that the appeal may be allowed. 5. Ld.SDR, as regards issue No.1 and 2, reiterates the finding....

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...., shall be utilized only towards payment of duty of Excise leviable under the said Additional Duties of Excise (Textile and Textile Articles) Act, or the National Calamity Contingent duty leviable under Section 136 of the Finance Act, 2001 as amended by Clause 161 of the Finance Bill, 2003, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931, the force of law, respectively on any final products manufactured by the manufacturer or for payment of such duty on inputs themselves if such inputs are removed as such or after being partially processed; Explanation: For removal of doubts, it is clarified that the credit of the additional duty of Excise leviable under Secti....

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.... period, provisions of Section 3 were specifically discussing about the transaction value to be considered for discharge of Central Excise duty liability.  In the orders of lower authority, we find that there is no allegation or rejection of transaction value on the findings which were raised by the appellant for the clearance of the finished goods during November 2003 and December 2003.  The reasonings adopted by the lower authorities for confirming the demand on the ground of under-valuation is incorrect as the stock ____________________________ could be for specific purpose and during the relevant period, stock declaration was made, rate/value could be the said value as was declared. But, on the date of clearance, what was ____....