2008 (8) TMI 355 - AT - Central Excise

Return of goods - Revenue proceeded against the appellants on the ground that when the goods were returned, the appellant did not follow the procedure prescribed in Rule 16 of the Central Excise Rules - the goods were returned to the factory only for proper re-packing. No other activity was undertaken. The appellant neither took Cenvat credit on the goods nor paid any duty or reverse the credit at the time of their reprocessing. - I find that in this case the goods had not been cleared to any other buyer. The goods were only returned from the appellants own depots. I agree with the learned Advocate s point that there is no Revenue s implication at all. In such circumstances, there is no justification for demanding any duty on this

Summary

The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant in a case where goods were returned to the factory for repacking. The tribunal found no Revenue implication as the goods were only returned from the appellant's own depots and not cleared to any other buyer. The impugned order was set aside, and the appeal was allowed with consequential relief.