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TMI Blog2009 (10) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... d into scrap. The Commissioner (Appeals) has relied upon a decision of the Tribunal in CCE, Jaipur-I v. RFH Metal Castings (P) Ltd., 2005 (184) E.L.T. 194, holding that the process undertaken for reducing defective goods to scrap did not amount to manufacture. Therefore, as per Rule 16(2), the assessee is required to pay an amount equal to Cenvat credit taken under sub-rule (1). Following the rati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... une 2005, the assessees who are manufacturers of rough steel forgings and availing CENVAT credit on inputs and capital goods used in the manufacture of final products, received back some forgings rejected by their buyers on payment of duty and the assessees took CENVAT credit under Rule 16 of the Central Excise Rules, 2002. In some cases, their quality control department found that some defects co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal in Menon Piston Rings Pvt. Ltd. v. CCE, Pune - 2007 (211) E.L.T. 394, the relevant portion of which is reproduced herein below:- "Rule 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipur-I v. RFH Metal Castings (P) Ltd., 2005 (184) E.L.T. 194, holding that the process undertaken for reducing defective goods to scrap did not amount to manufacture. Therefore, as per Rule 16(2), the assessee is required to pay an amount equal to Cenvat credit taken under sub-rule (1). Following the ratio of the above decision, I uphold the duty demands of Rs.7,70,692/- and Rs.2,36,438/-" 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (supra) relied upon in Menon Piston Rings Pvt. Ltd. (supra) are applicable on all fours to the facts of the present and following the same I uphold the finding of the lower appellate authority that credit is required to be reversed. 5. As regards the plea of time-bar raised by the assessees, I note that the Commissioner (Appeals) has not recorded any finding thereon. I, therefore, set aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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