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2016 (10) TMI 678 - AT - Central ExciseTaking credit of of duty paid by the SEZ unit on returned goods - CENVAT credit - whether the appellant manufacturer who cleared finished goods to M/s DLF Ltd (SEZ Developer) under bond without payment of duty and the same were again returned to the appellant by M/s DLF Ltd (SEZ Developer) under bonded Challan for replacement, and on failure of the appellant to replace in the time permitted M/s DLF Ltd. (SEZ Developer) deposited the Excise duty, and claimed reimbursement from appellant, the same was taken credit of by the appellant, whether the said credit was rightly taken by the appellant? - Held that: - the duty was paid by the SEZ Developer on non-fulfillment of the condition of the bond, as the appellant could not return the goods within the stipulated time. Such duty was admittedly paid, although under wrong head (Customs duty) and the same have been accepted by the appellant. Accordingly, I hold that the procedure of Rule 16 of Central Excise Rules, 2002 does not come in the way in denying the credit. I hold that the appellant is entitled to take credit under Rule 3 of the Cenvat Credit Rules as they have admittedly received the goods under proper documents reflecting the duty involved and the said duty have been admittedly paid on the removal of the goods, being the SEZ Developer, to the appellant - appeal allowed - decided in favor of appellant.
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