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TMI Blog2016 (1) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct need not be included in the cost. In the present case we find the appellant though availed the credit as permissible by the law, cannot utilize the same as the finished product Grey Fabric is not liable to AED (T&TA). As such, the said duty paid on inputs will become cost to the appellant, which cannot be passed on by way of utilization of the said credit for discharging the duty on finished product. This much is clear from appellant’s own treatment of the said credit as expenditure in the balance sheet for the year 2003-2004. Their not showing the said duty as expenditure in the next year will not affect the fact the AED paid has to be observed as a cost in view of the fact that they are not able to utilize the same - Decided agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision 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 component in arriving at the cost of Grey Fabrics for excise duty purpose. The learned AR on the other hand contended that the lower Authorities have examined the issue. There is no basis in the appeal to take a contrary view. 3. Heard both the sides and examined appeal records. The short point for decision is the inclusion of AED (T TA) in the cost of Grey Fabric is sent for job work when the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the like) to me is, therefore, ₹ 90/- in reckoning the cost of the final product I would include ₹ 90/- on this 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, the Hon ble Apex Court observed in such situation the duty which was already credited and which can be used for discharging duty on final product need not be included in the cost. In the present case we find the appellant t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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