9911796707
TMI Blog2012 (11) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... k from customers, the same are received under Rule 16 of the Central Excise Rules, 2002. In respect of defective CPTs returned to the factory under Rule 16, the appellant availed Cenvat credit of the duty earlier paid on them. According to the appellant, these tubes are dismantled, the usable parts are salvaged and thereafter using fresh parts, CPTs are made, which are cleared on payment of duty. There is no dispute that the appellant re-manufactured/re-made the tubes which are cleared on payment of appropriate duty. The department was of the view that since in the re-making of the CPTs some Cenvat credit availed parts/inputs are used and since re-making does not amount to manufacture, they would not be entitled to Cenvat credit in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parts are salvaged and by using salvaged and fresh parts, new CPTs are made in the same production line and in the same manner, which are cleared on payment of duty, that the Cenvat credit demand is, therefore, time barred, that making of CPTs by using the salvaged parts and new parts would amount to manufacture, and in this regard, he relies upon the decision of the Tribunal in the case of Commissioner of Central Excise, Ahmedabad v. Tudor (I) Ltd. reported in 2006 (197) E.L.T. 53 (Tribunal-Mumbai) and also the Tribunal's judgment in the case of Maruti Udyog v. C.C.E., New Delhi-III reported in 2002 (146) E.L.T. 427 (Tribunal-Delhi), that in both the judgments, it has been held when the defective/damaged goods cleared on payment of duty, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he requirement of pre-deposit. 5. I have carefully considered the submissions from both the sides and perused the records. In this case the defective CPTs, which had earlier been cleared on payment of duty, had been received back in the factory for being re-made in the terms of the provisions of Rule 16 of the Central Excise Rules, 2002. From the records, it is clear that the defective CPTs received back had been dismantled and thereafter by using salvaged parts and fresh parts, the entire process of manufacturing is undertaken on the same production line. The fresh CPTs made had been cleared on payment of duty. Under the provisions of Rule 16 of the Central Excise Rules, 2002, when duty paid goods are returned to the factory of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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