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2014 (12) TMI 119 - AT - Central ExciseAvailment of CENVAT Credit - Returned goods - Rule 16 of the Central Excise Rules - Revenue was of the view that is inasmuch as after entering the goods in their Cenvat Account, the assessee has simplicitor shown the issuance of the said inputs for further manufacture, without maintaining any records about the same - Commissioner held that duty demand for Cenvat credit on returned goods is not sustainable under law and deserves to be set aside - Held that:- no reasons to disagree with the finding of the appellant authority. As rightly observed by him, Revenue on one hand, is contending that no records were being maintained by the assessee after receipt of the returned goods, so as to show the further process taken by them and on the other hand, they are contending that 80% of the receipt material was cleared as scrap. The said submission of the Revenue is based upon the statement of the employee, without verifying as to whether the waste and scrap so cleared by the appellant emerged during the course of remanufacture or the not. The provision of Rule 16 does not require maintenance of any records. The returned goods have to be treated as inputs and the assessee having shown the issuance of the said inputs from their RG-I; had deemed to have manufactured their final product. In the absence of any documentary evidence in support of revenue’s stand, I find no justification for setting aside the impugned order of Commissioner (Appeals). - Decided against Revenue.
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