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2010 (2) TMI 846 - AT - Central ExciseCenvat credit - returned goods - availing cenvat credit on returned goods - D-3 initmation – Rule 16 - Held that:- manufacturer of final product receives the goods back from the customer under sub-rule (1) and removes the same as such without undertaking any process thereon is also covered by the second part of sub-rule (2), they did not claim that the goods returned by the first consignee were subjected to any process before its second clearance to other units, appellant had removed the goods as such without carrying out any process, the lower authorities have demanded reversal of the CENVAT credit on the premise that the first part of sub-rule (2) of Rule 16 covers second clearances of finished goods as such without undertaking any process, such second clearances, as in the instant case, are also covered by the expression ‘any other case’ figuring in the second part of sub-rule (2), duty paid by the appellant on their second clearances of tubes is in order and no additional amount of duty can be demanded from them, demand of duty is set aside on merits and consequently there can be no penalty on the appellant either. The appeal is allowed with consequential relief to the appellant.
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