2016 (1) TMI 763

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.... For the Respondent : Shri Govind Dixit, Authorized Representative (DR) ORDER PER. B. RAVICHANDRAN :- The appellants are engaged in the manufacture of Grey Fabrics, PV Grey Fabrics and Polyester Grey Fabrics. They were availing Cenvat credit of BED, SED and AED (T&TA) paid on inputs used in the manufacture of above final products. No AED (T&TA) was payable on the final products, namely, Grey F....

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....roduction of Grey Fabrics. They relied on the decision of Hon'ble Supreme Court in the case of CCE, Pune vs. Dai Ichi Karkaria Ltd. reported in 2004 (65) R.L.T. 443 (S.C.) and also Board Circular dated 12/03/2003. During the course of arguments, the learned Counsel for the appellant stated that when the AED (T&TA) was legally available as a credit, there is no question of addition of that componen....

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.... to the facts of the present case. This is clear from the observations and findings of the Hon'ble Apex Court, as reproduced below :-  "24. We think it is appropriate that the cost of the excisable product for the purposes of assessment of excise duty under Section 4 (1) (b) of the Act readwith Rule 6 of the Valuation Rules should be reckoned as it would be reckoned by a man of commerce. We....

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....s account." This, in real terms, is the cost of the raw material (exclusive of freight, insurance and the like) and it is this, in our view, which should properly be included in computing the cost of the excisable product". 4. It is clear that in the case under consideration by the Honble Supreme Court, the assessee can utilize the credit taken to pay excise duty on the finished product, as such....