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2014 (7) TMI 613 - CESTAT BANGALOREDuty demand on returned goods - goods scrapped after return as rejected goods - Rule 16 of Central Excise Rules 2002 - revenue contended that since the goods were scrapped totally the CENVAT credit could not have been availed - Held that:- duty cannot be demanded for the second time on the same goods without showing that they have not suffered duty. In this case there is no denial by both the lower authorities that there is no finding that the rejected goods when they were cleared did not suffer any duty and if the duty is demanded again, it would amount to demand of duty twice on the same goods which in my opinion is not proper. No investigation or verification was carried out by the lower authorities and the show-cause notice simply stated that rejected goods were scrapped which shows that officers did not even verify the records maintained and whether any records were maintained at all and if records were maintained what they said. Further, assessee had maintained records and had cleared the rejected goods after accounting them in the RG-1. Such being the case, it is difficult to take a view that there was suppression or mis-declaration. Therefore, on this ground also appellant has a case - Decided in favour of assessee.
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