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2015 (10) TMI 768 - CESTAT NEW DELHICENVAT Credit - whether the appellant is entitled to take Cenvat credit on the rejected goods received by them from their customers which were dismantled by them and part thereof used by them in manufacture of new product or not - Held that:- The provisions of Rule 16 (1) of the Central Excise Rules 2002 are relevant for availment of Cenvat credit thereon - assessee is entitled to take Cenvat credit which are duty paid. If the said goods are being remake, revision, recondition or for any other reason the assessee is required to record such receipts in their records and is entitled to take Cenvat credit on duty paid on such goods on their receipt. Admittedly, in this case the goods which have been received were damaged goods by the appellant have been dismantled and used for manufacturing of new product. Therefore, the appellant satisfied the conditions of Rule 16(1) ibid. Therefore, I hold that appellant is entitled to take Cenvat credit on these rejected goods. The said view has been supported by this Tribunal in the case of International Tobacco Ltd. (2011 (9) TMI 862 - CESTAT NEW DELHI), although that being a stay order. Therefore, I hold that appellant have taken the Cenvat credit correctly. - Impugned order is set aside - Decided in favour of assessee.
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