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TMI Blog2018 (11) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... 018-EX[DB] - Dated:- 3-4-2018 - MR ANIL CHOUDHARY, MEMBER (JUDICIAL) And MR ANIL G. SHAKKARWAR, MEMBER (TECHNICAL) Appellant: Sh. Ravinder Narain, Ajay Aggarwal, Ms. Mallika Joshi, Adv. Respondent: Sh. Mohd. Altaf, DR ORDER PER ANIL CHOUDHARY: Both the present appeals are filed by the Appellants against the Order-in-Original No. 28-29/Commr/Gzb/2010 dated 21.10.2010 passed by the Commissioner of Customs, Central Excise Service Tax, Ghaziabad. The period in dispute is November 2006 to May 2007 and August 2008 to April 2009. 2. The brief facts of the case are that, the Appellants are engaged in the manufacture of various brands of cigarettes on job work basis for M/s Godfrey Phillips India Limited. They ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Rule. He also submitted that Rule 16 is wide in nature as is clear from the words or any other reason and therefore refreshing of cigarettes would be covered by this Rule. Lastly, he prayed for setting aside of the impugned order. 4. On the other hand, the learned DR for the Revenue reiterated the findings of the impugned order. 5. We have heard both sides and perused the material available on record. To appreciate the rival submissions, it would be in the fitness of things to extract Rule 16 of the Central Excise Rules, 2002 which 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 bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into any factory for various reasons mentioned in the Rule, including but not limited to any other reason, they are entitled to take CENVAT Credit of duty paid on such goods, as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and is entitled to utilize this credit according to the said Rule. These returned cigarettes were brought back into the factory under conditions specified under Rule 16 of the Central Excise Rules, 2002 alongwith the Forwarding Challan-cum-Invoice counter signed by the Officer of the Department. From the record, we find that the adjudicating authority while coming to the conclusion in para 6.2 has observed that : 6.2. The issue in the present proceedings before me is whether cigarettes rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied by them for availment of credit on returned cigarettes. From the above, we find that the reasoning given by the adjudicating authority with respect to Rule 16 is by assuming that it deals with inputs as such and not inputs as if . 6. We further find that Rule 16 is wide enough to cover the case of the Appellants in view of the wordings used in it which inter alia includes any other reason for receiving the duty paid goods. The duty paid character of the goods, being not disputed in the present case, Rule 16 is squarely applicable and accordingly the Appellants have rightly taken the CENVAT Credit and utilized the same. 7. In view of the discussion made above, the penalty imposed on Shri R.K. Gupta, Deputy Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X
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