9911796707
TMI Blog2012 (10) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... mers as defective - Held that:- Appellant is entitled to take credit of duty paid by him at the time of clearance of the goods received back by him as defective - no time limit under Rule 16 - As the appellant are entitled to take credit as per Rule 16 of the Central Excise Rules 2002, therefore, they have taken credit correctly - appeal is allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... , they did not avail the same. Some of the goods returned by the customers were repairable which were repaired and cleared on payment of duty. The goods which were not repairable were sold by the appellant as scrap. On goods which were sold by the appellant as scrap, the appellant availed credit of duty by following the procedure under Rule 16 of the Central Excise Rules, 2002 wherein it is stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time. Denial of credit is not proper and therefore, the impugned order is to be set aside. 5. On the other hand, the learned AR strongly oppose the contention of the learned counsel and submitted that as per Rule 16 of the Central Excise Rules 2002, on the goods received back in their factory, the appellant has to take credit immediately, which they have not taken at the time of receipt of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to take credit of duty paid by him at the time of clearance of the goods received back by him as defective. There is no time limit under Rule 16 ibid. Therefore, the contention of the learned AR is not acceptable. As the appellant are entitled to take credit as per Rule 16 of the Central Excise Rules 2002, therefore, they have taken credit correctly. 8. In view of these observations, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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