2017 (4) TMI 20

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..... p; Shri L Patra, Authorised Representative ORDER This appeal is filed against OIA-PJ/600/VDR-I/2012-13 dt 21/03/2013 passed by the Commissioner of Central Excise, CUSTOMS (Appeals)- VADODARA-I. 2.  Briefly stated the facts of the case are that the Appellants had initially exported 'Rubber Stoppers' manufactured by them under bond which was rejected by their foreign buyer accordingly, later .....

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..... the Appellant submits  that since  the goods were exported under bond (without payment of duty), on its rejection by the foreign buyer, the CVD was paid at the time of re-importation and accordingly the CENVAT Credit on the CVD amount was availed in accordance with the Rule 16 of Central Excise Rules 2002.  He submits that after making some value addition, they cleared the goods on .....

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..... tion by the foreign buyer, later returned and  at the time of re-import, the CVD was required to be paid.  The Rule 16 of Central Excise Rules 2002 reads as under:- "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 othe .....

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..... VAT Credit as if it was a duty paid by the manufacturer who removes the goods.] (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner." 6.  On a pl .....

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..... ENVAT Credit Rules, 2004.  Thus, a fiction has been created to consider the finished goods cleared initially, when returned to the factory for being remade, refined and reconditioned etc or for any other reason as an input.  In the present case, the situation is covered under the expression "for any other reason", hence, the Appellants are definitely eligible to the credit of the CVD pai .....

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