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TMI Blog2004 (10) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... the inputs under the Cenvat Credit Rules; that at time they clear some inputs as such to their Marketing Division by reversing the Cenvat Credit taken by them at the time of receipt of inputs; that the Revenue has confirmed the demand of duty and imposed penalty on the ground that they were required to pay duty based on selling price of their Marketing Division. The learned Advocate submitted that during the relevant period, Rule 3(4) of the Cenvat Credit Rules provides that when inputs on which Cenvat Credit has been taken, are removed as such from the factory, the manufacturer shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CCE, Vadodara v. Asia Brown Boveri Ltd., 2000 (120) E.L.T. 228 (T-LB) and CCE, Coimbatore v. American Auto Service, 1996 (81) E.L.T. 71 (T-LB) that what an assessee is required to do when he removes inputs as such can only be to restore the credit which he had taken .... Nothing more was required of them. Finally, the learned Advocate relied upon the Board s Circular No. 643/34/2002-CX., dated 1-7-2002 wherein it has been clarified that when the inputs are transferred to a sister unit, it would be reasonable to adopt the value shown in the invoice on the basis of which Cenvat Credit was taken by the assessee in the first place. 3. Countering the arguments, Shri S.C. Pushkarna, learned Departmental Representative, submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvisages bringing of inputs, taking Cenvat Credit, use of inputs in or in relation to the manufacture of final products which are to be removed on payment of duty by debiting Cenvat Credit Account. Thus the inputs in respect of which Cenvat Credit has been taken are to be used in the manufacture of final products. As a facility to the manufacturer, Rules also permits the manufacturer to remove the inputs as such on fulfilment of certain conditions specified in Rule 3(4) of the Cenvat Credit Rules, 2001. The conditions specified are that the manufacturer shall pay an amount equal to the duty of excise which is leviable on such goods at the rate applicable to such goods on the date of such removal and on the value determined for such goods u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Larger Bench of the Tribunal in the case of Asia Brown Boveri and American Auto Service is not applicable to the facts of the present matter as the provisions of Rule are completely different. Rule 57F(1)(ii) of the Central Excise Rules which has been considered by the Larger Bench reads as under : 57F(1). - The inputs in respect of which credit of duty has been allowed under Rule 57A may - (i) ...................... (ii) Be removed subject to the prior permission of the Collector of Central Excise, from the factory for home consumption or for export on payment of appropriate duty of excise or for export under bond, as if such inputs have been manufactured in the said factory : Provided that where the inputs are remov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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