Applicant importing parts of MV and clearing same after packing and labeling but without mention MRP and by reversing CENVAT credit - Revenue alleging ‘manufacture'
THE applicants are importing parts of motor vehicles on payment of appropriate customs duty as well as CVD and SAD. They were clearing the parts after packing and labeling except mentioning MRP by reversing the CENVAT credit availed in respect of the imported parts.
The Revenue contention is that since the activity undertaken by the applicant amounts to manufacture and as the applicants are not putting any MRP, therefore, the assessable value is to be arrived at by following Rule 8 of the Central Excise Valuation Rules, 2000.
Since the CCE, Pune-I confirmed the demand of Rs.1,68,43,780/-with interest and also imposed penalty, the appellant is before the CESTAT.
It is submitted that the credit which was reversed at the time of clearance of the parts, on the presumption that the parts are cleared as such, is much more than the duty confirmed.
On the last date of hearing, the Bench directed the Revenue to verify this aspect.
During the hearing on 02.07.2013, the AR produced a letter from the office of the Commissioner of Central Excise, Pune-I, dated 24.06.2013 verifying that the applicants had reversed the credit of SAD of Rs.2,37,96,102/- during the period in dispute.
Noting that the demand is less than the credit reversed, the CESTAT observed that the applicants have made out a case for waiver of pre-deposit of the dues. Accordingly, the pre-deposit of the dues was waived and the recovery stayed.