Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 5 - AT - Central ExciseAvailability of cenvat credit of duty paid on its returned goods – Held that:- Provisions of Rule 16 is a beneficial piece of legislation allowing the manufacturer to avail the credit of duty in case of return of goods which were originally cleared by him on payment of duty - The safeguard for such availment of credit stands prescribed by way of trade notice and clarifications - As long as goods are received back under the cover of duty paying documents, which are easily co-relatable to the received back goods, no further insistence on identification marks is required - The goods are insecticides and pesticides, which do not carry any such manufacturing number or any other identification marks - It is not necessary that the entire packing cleared by the appellant would get damage and it may happen in certain cases that part of the certain goods gets damage - only a part of the goods are returned back to the appellant - Insistence on the fact that entire goods in the original packing should go back, would defeat the very purpose of Rule 16 - Rule 16 would become otiose in respect of number of goods manufacturer inasmuch as most of the goods do not carry any identification marks on them - it is the chemicals which do not carry any marks etc. the same can be identifiable with the original clearance only on the basis of original duty paying documents and the Revenue's insistence on the identification particulars cannot be appreciated. the appellants have produced on record the detailed chart showing co-relation of each of the returned consignment with the original clearance - Revenue intended to make a case under Rule 16 Central Excise Rules 2001, it proceeded to make allegation under Rule 7 of Cenvat Credit Rules 2001 - Rule 7 lends support to Rule 16 - But substantial allegation when appears to be under Rule 16 adjudication proceeded to examine technicality of that Rule without testing the principal allegation – decided in favour of Assessee.
|