2017 (10) TMI 187

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..... R, 2002 is to enable reconditioning and further processing within the framework of legality without, in any way, compromising the rigor of maintenance of the CENVAT account. It, therefore, does not exclude the possibility of scrapping during the stage of re-manufacture and it is not in any way different from scrapping at the stage of original manufacture - appeal allowed - decided in favor of appe .....

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..... the required criteria are returned under rule 16 of the Central Excise Rules, 2002; upon return, the duty discharged at the time of clearance is availed as CENVAT credit. While most of such returned goods are rectified and cleared again in accordance with rule 16 of Central Excise Rules, 2002, some owing to defects that are non-rectifiable, are perforce subject to cutting for clearance as scrap o .....

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..... ile the penalty on the employee was set aside. Appellant challenges the impugned order. 2. Learned Counsel for appellant contends that the goods were properly returned in accordance with rule 16 of the Central Excise Rules, 2002 and that the goods which were cleared as scrap cannot be delinked from the process of manufacture which is an accepted reality in every manufacturing enterprise. It is hi .....

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..... ce on the decision of this Tribunal in Meghdoot Refrigeration Industries Pvt Ltd v. Commissioner of Central Excise, Mumbai [Appeal no. E/785/2012 dated 31st August 2016] which has denied benefit of CENVAT credit on goods which were brought back to the factory and scrapped. 4. On a perusal of the order cited by Learned Authorised Representative, I find that there is a clear recording of the fact t .....

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..... l of credit on inputs would not have arisen I find no ground to accept the contention of Revenue. The purpose of rule 16 of Central Excise Rules, 2002 is to enable reconditioning and further processing within the framework of legality without, in any way, compromising the rigor of maintenance of the CENVAT account. It, therefore, does not exclude the possibility of scrapping during the stage of re .....

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