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2017 (10) TMI 434 - AT - Central ExciseCENVAT credit - returned goods - Rule 16(1) of Central Excise Rules 2002 - case of the Revenue is that as these returned goods have been cleared as such therefore they are required to reverse the Cenvat credit availed on these returned goods under Rule 3(5) of CCR, 2004 - Held that: - those returned goods have been tested by the appellant and found that these are scrap and cannot be reused which have been cleared on payment of duty. It is not the case of the Revenue that these goods have been cleared as such without payment of duty. In that circumstances when returned goods have been tested in their factory and found scrap which has been cleared on payment of duty. Therefore, provisions of Rule 3(5) of Cenvat Credit Rules 2004 are not attracted to the facts of this case. Reliance placed in the case of M/s Tube Products of India Vs. CCE [2015 (12) TMI 1004 - CESTAT CHENNAI], where it was held that such second clearances, as in the instant case, are also covered by the expression ‘any other case’ figuring in the second part of sub-rule (2). It would follow that the duty paid by the appellant on their second clearances of tubes is in order and no additional amount of duty can be demanded from them. The appellant is not required to reverse Cenvat credit equal to availed the Cenvat credit on these returned goods - appeal allowed - decided in favor of appellant.
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