2017 (6) TMI 203

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ave not carried out any activity but the goods were cleared as such they are entitled for the cenvat credit in terms of Rule 16 - appeal allowed - decided in favor of appellant.
Shri Ramesh Nair, Member ( Judicial ) Shri Vinod Atwani, CA for the appellant Shri S.V. Nair, Asstt. Commissioner (AR) for the respondent ORDER The fact of the case is that the appellants are engaged in the manufacture of files falling under chapter 8203 1000. In the present case, they have received the duty paid files from the other unit and thereafter the same was exported along with own manufactured files. They have availed the cenvat credit on the files received from the other unit and discharged the excise duty and also cleared under bond. The department .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ) Narmada Chematrue Petrochemicals Ltd. 2005 (179) ELT 276 (SC) v) S. Kumars Nationwide Ltd. 2014 (312) ELT 725 3. Shri S.V. Nair, ld. Asstt. Commissioner (AR) appearing on behalf of the revenue reiterates the findings of the impugned order. He further submitted that in the show-cause notice there is allegation that the appellants have paid excess duty while clearing the same. Therefore, they have violated the condition of Rule 16. He further submits that the Rule 16 only permits to receive the duty paid goods for the purpose of repairing, reconditioning, remaking whereas in the present case the appellants have not carried out any such activity and the goods are resold as such, therefore they are not entitled for the cenvat credit in ter .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (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." 5. On a plain reading of the above Rule 16 it is provided that the manufacturer can receive the duty paid goods not only for activity such as repairing, reconditioning, remaking but for any other reason, the only condition is required that at the time of clearance of such goods the equal amount of cenvat credit has to be paid if there is no activity which amounts to manufacture. This provision itself shows that there are two situations one, the activity amounts to manufacture and other, activity which does not a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X