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2020 (12) TMI 365 - CESTAT CHANDIGARHCENVAT Credit - rejected goods - rectify/re-make the goods for sale - case of the revenue is that in the cases, the goods were cleared as scrap, the appellant is required to pay cenvat credit availed on such goods at the time of clearance as they have removed the goods as such in terms of Rule 16(2) of Central Excise Rules, 2002 - HELD THAT:- The rejected goods were received by the appellant and at the time of receiving the rejected goods, the appellant took the cenvat credit in terms of Rule 16 of Central Excise Rules, 2002. It is also fact on record that these goods were subject to re-make and during the process of re-make certain goods were found cannot be re-made and the same were cleared as scrap on payment of duty, therefore, the provision of Rule 16(2) are not applicable to the facts of this case to allege that the goods were cleared as such. In fact, as per the facts of the case itself, it is clear that the returned goods were subjected to some process and when they were not found up to the mark were cleared on payment of duty as scrap - The appellant has correctly paid the duty as scrap at the time of clearances. Revenue Neutrality - HELD THAT:- The appellant has cleared these goods to their another unit. Admittedly, whatever duty have been paid, the same are entitled to cenvat credit to themselves. In that circumstances, it is a revenue neutral situation. In that circumstances also, the appellant are not required to pay any differential duty or any amount on account of cenvat credit. Appeal allowed - decided in favor of appellant.
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