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2017 (3) TMI 862 - AT - Central ExciseReturned goods - Rule 16 - Reversal of CENVAT credit or payment of appropriate duty on goods processed - whether the appellant-assessee is required to discharge/reverse the entire CENVAT credit on the equipment which were received back for reconditioning/repair or otherwise? - The laboratory equipment from where parts are removed are discarded as scrap on payment of duty - Held that: - the issue is no more res integra - the Tribunal in the case of Maruti Udyog Ltd v. Commissioner of Central Excise, New Delhi - III [2002 (8) TMI 155 - CEGAT, COURT NO. II, NEW DELHI] on identical issue, has held that manufacturing means put into the process of utilization of salvaged parts. When the vehicle is brought back to the factory for the intended purposes as stipulated under Rule 16(1) the credit of duty paid on such vehicle is available to the appellant. That such vehicles undergo a process of manufacture and become part of process of production of new vehicle is settled and undisputed - appeal allowed - decided in favor of appellant.
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