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2017 (8) TMI 98 - AT - Central ExciseCENVAT credit - rejected goods - whether the appellants are eligible to avail credit on the rejected goods under Rule 16(1) of the CCR, 2002? - Held that: - the duty paid on the transaction value was more than the credit availed on the rejected goods, whereas in few cases, there was marginal short payment of credit, totalling to ₹ 36,803/-. The Ld. Advocate fairly accepts that in the event, the process is considered is not amounting to manufacture than as per Rule 16 (2) of CCR, 2002, they are required to reverse the credit availed on the rejected goods. Therefore, the appellant is required to reverse excess credit of ₹ 36,803/-. Penalty - Held that: - the appellant had duly maintained registers/records in the receipt and disposal of the rejected goods supported by evidences like rejected Memos, LRs etc. Thus, they have correctly availed the Cenvat credit; accordingly, imposition of penalty under Rule 15 (2) of CCR, 2002 readwith Section 11AC of the CEA, 1944 is unwarranted/unjustified. Decided partly in favor of appellant.
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