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2016 (1) TMI 157 - AT - Central ExciseCenvat Credit - return of rejected articles of rubber back from their customer - removal of such goods as scrap later - scope of Rule 16 of CE Rules, 2002 - Held that:- assessee had tried to reprocess the finished goods received and in few cases no duty was paid. The finished goods received back resulted in scrap. The assessee has discharged the duty liability on scrap on the value of the invoices raised by them. In our considered view, this is a correct position of the law and if any inputs are issued to the job-worker for manufacturing and manufacturing activity undertaken on such inputs, the resultant product cleared as scrap and no input as such - Demand set aside - Decided in favor of assessee. As regards the demand of duty on the value of moulds used by the respondent in manufacturing the final products to their customers - Held that:- when the Central Excise duty is paid on moulds at one time or recovered by amortising the cost of goods produces, it is the same i.e. duty on value of mould is to be recovered, which in this case has already discharged by the assessee - No demand can be made - Decided in favor of assessee.
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