2017 (11) TMI 7

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..... it - Held that: - it is apparent that the whole proceedings against the appellant are only with reference to the non-inclusion of subsidy element given by the Government in the assessable value of exempted urea for the purpose of reversal of credit in terms of Rule 6 of CCR. Nowhere, the proposal regarding disallowing the dealers commission while arriving at the transaction value was alleged or di .....

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..... namely, urea is exempted from payment of Central Excise Duty. Since they are not maintaining separate accounts in respect of inputs on which credits have been availed and used both in the manufacture of dutiable as well as the exempted final product, the appellants decided to reverse the cenvat credit on proportionate basis in terms of provisions contained in Rule 6 (3A) of the Cenvat Credit Rule .....

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..... n this regard was adjudicated by the impugned order. The original authority held that the subsidy received by the appellant on exempted urea cleared by them is not to be considered for valuing such urea for the purpose of reversal of proportionate credit in terms of Rule 6 (3A) of CCR, 2004. However he held that out of proposed additional reversal of credit in terms of the show cause notice, an am .....

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..... ound to deny a portion of the credit. The said proposal was not at all made in the original show cause notice. On this ground alone, the ld. Counsel prayed that the impugned order is not sustainable. Even on merit, he submitted that dealer s commission is very much a deductible element to arrive at the transaction value under Section 4. 3. The ld. AR reiterated the findings of the original auth .....

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..... of exempted urea for the purpose of reversal of credit in terms of Rule 6 of CCR. Nowhere, the proposal regarding disallowing the dealers commission while arriving at the transaction value was alleged or discussed. 6. We find that for the first time the original authority examined that issue and decided that a portion of the proposal made in the show cause notice is sustainable on this ground. .....

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