2015 (10) TMI 886

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....hri S.V. Nair, Assistant Commissioner (AR) : For The Respondent ORDER Per: P.K. Jain Brief facts of the case are that the appellants are engaged in the manufacture of UPS system. For the manufacture of UPS system, they are importing certain inputs and availing cenvat credit on the same. At times, some of the inputs are cleared to various depots, branch offices for purpose of warranty repl....

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.... 4. Learned AR, on the other hand, took us through the impugned order and submitted that in the order quoted by the appellant, the Boards circular No. 643/34/2002-CX dated 1.7.2002 has not been taken into account and in view of the then existing provisions of the law, the appellant is required to reverse the amount on the higher value as determined under Section 4 of the Central Excise Act. 5.....

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....context, it was held the price of the goods sold should be basis for payment of duty and mere reversal of credit would not suffice. In the present case, there is no sale or resale of the goods. The goods are cleared from the factory to meet the warranty obligations free of charge. Therefore, the ratio of the said decision would not apply. It is in this context, one has to see Larger Benchs decisi....