TMI Blog2015 (10) TMI 1700X X X X Extracts X X X X X X X X Extracts X X X X ..... ions prescribed in Rule 16(1) are fulfilled, therefore, the credit taken can not be denied. - So far as Rule 16 (2) is concerned the same is procedural and does not indicate maintenance of special records. In Para 7 of the reply to the show cause notice, as reproduced by Commissioner (Appeals) in Para 9 of his OIA dated 07.11.2012, appellant has argued that the repaired containers or rejected and repaired containers or waste of such returned containers are all cleared on payment of duty. It is not the case of the Revenue that metal containers after repair were cleared clandestinely without payment of duty by the appellant. There is no shortage of metal containers brought out by Revenue. CENVAT credit can not be denied on procedural lapses w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value as per the provisions of Rule 16 of the Cenvat Credit Rules, 2004. Learned Advocate relied upon the following case laws to argue that CENVAT credit of rejected goods were rightly admissible under Rule 16:- (a) CCE Meerut-II vs. Polyplex Corporation Limited - [2008 (224) ELT 46 (Uttarakhand)] (b) Hitesh Plastics Pvt. Limited vs. CCE Cus, Vapi - [2009 (243) ELT 419 (Tri. Ahmd.)] (c) CCE, Jaipur vs. Amco India Limited - [2015 (316) ELT 525 (Tri. Del.)] (d) Dhanuka Pesticides vs. CCE, Delhi-III - [2014 (303) ELT 90 (Tri. Del.)] 3. Shri J. Nair (AR) appearing on behalf of the Revenue argued that appellant has not maintained any record evidencing payment of duty on rectified goods as per the provisions of Rule 16(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of Section 3 or Section 4 or Section 4A of the Act, as the case may be. 4.1 It is observed that Rule 16(1) of the Cenvat Credit Rules, 2004 is not subject to the provisions of Rule 16(2) or maintenance of certain prescribed records. Rule 16(1) conveys that where any finished goods are received for remaking, refining, reconditioning or for any other reason than an assessee shall state the particulars of such receipt in his record and shall be entitled to CENVAT credit of duty paid on the returned goods. Since these conditions prescribed in Rule 16(1) are fulfilled, therefore, the credit taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intenance of special records. In Para 7 of the reply to the show cause notice, as reproduced by Commissioner (Appeals) in Para 9 of his OIA dated 07.11.2012, appellant has argued that the repaired containers or rejected and repaired containers or waste of such returned containers are all cleared on payment of duty. It is not the case of the Revenue that metal containers after repair were cleared clandestinely without payment of duty by the appellant. There is no shortage of metal containers brought out by Revenue. CENVAT credit can not be denied on procedural lapses when the rejected containers were duly reflected in the CENVAT credit account and shown utilised. One to one correlation of rejected containers received with subsequent clearanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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