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2015 (10) TMI 1700 - AT - Central ExciseDenial of CENVAT Credit - Whether appellant has correctly availed cenvat credit with respect to appellant’s own goods received back as rejected goods for repairs, rectification etc. - Held that:- Rule 16(1) of the Cenvat Credit Rules, 2004 is not subject to the provisions of Rule 16(2) or maintenance of certain prescribed records. Rule 16(1) conveys that where any finished goods are received for remaking, refining, reconditioning or for any other reason than an assessee shall state the particulars of such receipt in his record and shall be entitled to CENVAT credit of duty paid on the returned goods. Since these conditions prescribed in Rule 16(1) are fulfilled, therefore, the credit taken can not be denied. - So far as Rule 16 (2) is concerned the same is procedural and does not indicate maintenance of special records. In Para 7 of the reply to the show cause notice, as reproduced by Commissioner (Appeals) in Para 9 of his OIA dated 07.11.2012, appellant has argued that the repaired containers or rejected and repaired containers or waste of such returned containers are all cleared on payment of duty. It is not the case of the Revenue that metal containers after repair were cleared clandestinely without payment of duty by the appellant. There is no shortage of metal containers brought out by Revenue. CENVAT credit can not be denied on procedural lapses when the rejected containers were duly reflected in the CENVAT credit account and shown utilised. One to one correlation of rejected containers received with subsequent clearances is not prescribed under Rule 16 of the Cenvat Credit Rules. - Decided in favour of assessee.
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