9911796707
TMI Blog2007 (7) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... ey cleared some of the consignments in July, 2002, October, 2002, December, 2002 and February, 2004 which were returned. (c) When the goods were originally cleared a duty amount of Rs. 36,928/- was paid which was taken as credit when the goods were returned. (d) The goods could not repaired/reconditioned for reuse as perforated nickel screen and the same were sold as scrap in April 2004 and March, 2005. (e) When the scrap arising out of the returned goods were cleared an amount of Rs. 2,461/- was paid as duty applicable on the scrap under Chapter 7204. (f) The original authority vide its order dated 2-2-2006 held that since the return of the rejected goods is covered under first part of Rule 16(2) which envisages tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holds that duty shall be paid at the applicable rates and value shall be applicable. In their case the duty is payable as applicable to the scrap falling under Chapter 7204 which has been paid. (c) This is a case involving interpretation and the question of imposition of penalty under Section 11AC does not arise. (d) He also relies on the decision of the Tribunal in the case of C.C.E., Mumbai v. Tata SSL reported in 2005 (191) E.L.T. 799 and the decision in the case of Sundaram Industries Ltd. reported in 2006 (202) E.L.T. 538 in support of the proposition that when the duty paid goods are returned and could not be reconditioned and sold as scrap on payment of duty, the credit taken at the time of return of the duty paid goods n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in manufacture and normally, the credit available at input stage is lesser than the duty payable on the final product except in stray cases of unintended aberration. In this case, what has been received by the appellant is definitely not san input or capital goods. It is by a deemed fiction created under Rule 16 of the Central Excise Rules, the returned goods have been given the status of input. But for Rule 16 of the Central Excise Rules, 2002 the question of granting any credit for these returned goods to the appellant does not arise. When benefit of credit is made available in terms of Rule 16 of the Central Excise Rules, naturally the same is available subject to fulfillment of the conditions prescribed therein. Rule 16 provides tw ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
