Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1378 - CESTAT MUMBAICENVAT Credit - returned goods - Rule 16 of CCR - whether on clearance of the ‘returned goods’ received under Rule 16(1) of the Central Excise Rules, 2002, it is required to reverse the amount of credit availed on the quantum of duty initially paid or the rate of duty prevalent on the date of clearance of the returned goods? Held that:- When the ‘returned goods’ are subjected to process, which does not result into manufacture, the manufacturer shall pay an amount equal to the CENVAT Credit taken under sub-rule (1) of the said rules. In the present case, no evidence has been brought on record that the returned goods were subjected to process amounting to manufacture, therefore, the appellant is required to reverse the credit availed on the returned goods, at the time of its initial clearance from the factory. Thus, there is no discrepancy in the impugned order in confirming the demand of differential credit and interest - However, as far as penalty is concerned, the appellant could make out a case that the returned excisable goods were cleared second time from the factory on payment of duty, at lower rate, and demand notice has been issued for normal period - penalty set aside. The appeal is partly allowed.
|