2013 (10) TMI 1089

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..... MURTHY The issue involved in this case is whether the appellant is required to pay 5%/10% of the value of the chilli seeds which are taken out from the chilli before commencement of manufacture of oleoresin and de oiled cake which emerges after the oleoresin is extracted from chili. 2. The learned counsel for the appellant submits that the chilli seeds emerge before the process of manufacture o .....

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..... heir sister unit and credit should not have been availed on the final products. In respect of this amount, he would submit that goods were repacked and exported. According to Rule 16 of Central Excise Rules, 2002, the credit can be availed even if any process is carried out. If the process carried out amounts to manufacture, duty will be payable on the transaction value and if the process does not .....

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..... ds. 4. We have considered the submissions made by both the sides. We find that the submissions of the learned counsel that chilli seeds emerge before the manufacturing process of oleoresin commences and therefore the appellant may not be required to reverse input credit has considerable force. As regards the input service, the appellant has already reversed the proportionate amount of CENVAT cred .....

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