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2016 (3) TMI 567 - AT - Central ExciseDamaged goods beyond recovery - partial damage - Export of damaged goods reprocessed - Claim of recovery - demand duty on 11786.30 mtrs of fabrics on the grounds that it was not possible to verify the correctness of the claim that the goods which have been cleared are re-processed goods - benefit of Notification No. 24/2003-CE dated 31.3.2003 denied - Held that:- We find that it is not disputed that the damaged goods were brought back into the factory. The argument of the Revenue that it is not possible to reprocess the goods in 2007 which were considered unfit for reprocessing in 2003, is not sustainable in view of the facts that the technology keeps improving and any claim made in 2003 is based on the appellants knowledge at the material time. The appellants have argued that in 2006, they come to know the chemicals which can reprocess the said materials and they reprocessed the material. We do not find that there is anything which cannot be taken at face value. The appellants have not only shown the details of clearance of reprocessed materials in export/DTA on payment of duty and Revenue has not challenged that fact. Revenue has only raised the suspicion that the records produced by the appellant are not authenticated. The assertion of the appellant cannot be set aside merely on suspicion. It has not stated by the Revenue at any stage as to what records were required to be produced that the appellant failed to produce. The facts of the case are not exactly similar but it is seen that the appellants are not much better footing than Madhav Marbles (2008 (10) TMI 209 - CESTAT, CHENNAI) in so far as the goods have not been totally lost but have been only partially damaged. If benefit can be given in case of goods totally lost then there is no reason to deny benefit in case of appellants where the goods were only partially damaged and they were able to reprocess the goods. - Decided in favour of assessee
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