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2016 (11) TMI 97 - AT - Central ExciseAvailing credit on returned goods - Rule 16(1) of Cenvat Credit Rules, 2002 - buy-back of non-usable batteries - reliance placed in the decision of Maruti Udyog Ltd. v. C.C.E., Delhi III [2015 (12) TMI 1493 - CESTAT NEW DELHI] - The appellant emphasizes that after bringing the unusable batteries back to the factory they retrieved the lead for which is used for manufacturing new batteries; and the remaining material of unusable batteries is sold as waste and scrap on payment of duty of central excise. The appellant claims that new products are made out of unusable batteries. - Held that: - subject transaction of the appellant is covered under Rule 16(1) of Central Excise Rules, 2002 and the said transaction is not covered within the mischief of Rule 16(2) of Central Excise Rules, 2002. It is a fact that retrieved material of old batteries underwent certain processes and was cleared as new battery and as waste/scrap on payment of duty of Central Excise. Therefore, following the CESTAT Delhi’s decision in the case of Maruti Udyog Ltd. v. C.C.E., Delhi III, the appellant is entitled to Cenvat Credit under Rule 16(1) of Central Excise Rules, 2002 - appeal allowed - decided in favor of appellant.
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