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2009 (10) TMI 274 - CESTAT, CHENNAICenvat Credit- The issue involved is whether the assessees are required to pay an amount equal to CENVAT credit taken under sub-rule (1) of Rule 16 on forgings manufactured initially and cleared on payment of duty and brought back to the factory and converted into scrap. The Commissioner (Appeals) has relied upon a decision of the Tribunal in CCE, Jaipur-I v. RFH Metal Castings (P) Ltd., 2005 (184) E.L.T. 194, holding that the process undertaken for reducing defective goods to scrap did not amount to manufacture. Therefore, as per Rule 16(2), the assessee is required to pay an amount equal to Cenvat credit taken under sub-rule (1). Following the ratio of the above decision, uphold the duty demands. Held that- the ratio of the Tribunal’s decision in are applicable on all fours to the facts of the present and following the same I uphold the finding of the lower appellate authority that credit is required to be reversed. As regards the plea of time-bar raised by the assessees, I note that the Commissioner (Appeals) has not recorded any finding thereon. I, therefore, set aside the impugned order and remit the case for fresh decision on the limitation aspect.
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