TMI Blog2008 (2) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... reversed only at the time of removal of the goods - admittedly the goods were still lying in the factory premises, no mala fide intention can be attributed to the appellant for evading any duty so as to justifiably invoke the penal action - E/21/2008 - A/334/2008-WZB/AHD - Dated:- 20-2-2008 - Ms. Archana Wadhwa, Member (J) Shri J.C. Patel, Advocate, for the Appellant. Dr. M.K. Rajak, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught back were scrapped by the appellant instead of being refined or remaking or remanufactured. As such, the officers entertained a view that the credit availed by the appellant is required to be reversed by them. The appellants, accordingly, reversed the credit of Rs. 4,30,387/- along with interest amount of Rs. 71,569/-. 4. Based upon the above, the proceedings were initiated against them v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , I find that the provisions of Rule 16 of the Central Excise Rules, 2002 are to the effect that "where any goods on which the duly had been paid at the time of removal thereof are brought to any factory for being remade or refined or re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his record and shall be entitled to take the cenvat credit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-section (2) of Section 3 or Section 4 or Section 4A of the Act, as the case maybe." In terms of above rule, if the brought back goods are not manufactured, the cenvat credit is required to be reversed before the goods being removed from the factory. Admittedly, the goods, in the present case, were still in the factory premises. An assessee would come to know about the fact of re-condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. Inasmuch as, admittedly the goods were still lying in the factory premises, no mala fide intention can be attributed to the appellant for evading any duty so as to justifiably invoke the penal action against them. Accordingly, I set aside the impugned order of the Commission (Appeals) and restore the order of the Assistant Commissioner vide which he has confirmed the demand of duty and interes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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