2017 (12) TMI 1434

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.... of goods falling under chapter heading 8536 and 9028 of CETA. It appears that the appellant cleared their products on payment of duty and e-filed the monthly ER-1 returns. During the month of June, 2013, 11330 nos. of SP static LCD meter sub-assemblies / components falling under 90289010 valued Rs. 55,12,045/- were cleared with 10% of duty, during November 2013, 2650 nos. of the goods valued Rs. 13,05,125/- were cleared without payment of duty and 2667 nos. valued Rs. 13,13,498/- were cleared on payment of 10% of duty. Actual rate of duty was 12% for the above period. Further they transferred these meters from the finished goods account and cleared them as materials returned for rectification to M/s. RMC Swith Gears ltd., Jaipur, the origi....

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....w material account and returned to the supplier for rectification and return. He further submitted that at the time of return of inputs duty @ 10% was paid since it was the duty paid by the input manufacturer but by Order-in-Original, the Department has demanded the payment of duty @ 12% which was the rate applicable for electric meters during the period of returns of the inputs for rectification. He further submitted that Rule 3(5) of CENVAT Credit Rules, 2004 (CCR) not applicable since the inputs were not removed as such. Learned counsel further submitted that no manufacturing operation had taken place under which additional duty was payable. He further submitted that the goods were returned on the same status as supplied by the supplier.....