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2016 (8) TMI 1113 - CESTAT MUMBAICenvat credit - duty paid goods cleared on their own invoices received back due to defect/rejection - Cenvat credit took on the returned goods for reprocessing during 14/7/2001 to 31/3/2005 on the strength of their own invoices - procedure laid down under Rule 173H of CER, 1944 read with Rule 16 of CER, 2002 viz., non-maintainance of separate account for returned goods, no proper documents evidencing payment of duty on rejected goods and no permission was taken from the department before bringing such goods into their factory has not been followed. Rule 16 of Central Excise Rules, 2002 provides that on the duty paid goods brought in the factory, the assessee can avail the Cenvat Credit as if there is receipt of input. Rule does not prohibit taking credit on the assessee’s own invoices. The appellant's own invoice in present case is duty paid invoice therefore whether the invoice is of appellant's own or issued by person returns the goods back, it is one and the same. It is immaterial who has issued invoice but important is whether invoice is duty paid invoice. Therefore irrespective of fact whether the invoices are of appellant or otherwise if duty paid goods is brought in the factory of the assessee credit can be allowed. As regard the contention of the show cause notice as well as adjudication order that the procedure has not been followed, on going through the aforesaid Rule 16, I find that no procedure is prescribed for taking credit on the returned goods, therefore only requirement is duty paid goods should be brought in the factory and same should be recorded in their books and at the time of re-issue of such repaired/reprocessed goods proper duty has to be paid therefore no procedure such as making application or taking permission is required for compliance of Rule 16. Therefore, in my view Cenvat credit availed on the returned goods is allowable. - Decided in favour of appellant
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