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2016 (1) TMI 157 - CESTAT MUMBAI

2016 (1) TMI 157 - CESTAT MUMBAI - TMI - Cenvat Credit - return of rejected articles of rubber back from their customer - removal of such goods as scrap later - scope of Rule 16 of CE Rules, 2002 - Held that:- assessee had tried to reprocess the finished goods received and in few cases no duty was paid. The finished goods received back resulted in scrap. The assessee has discharged the duty liability on scrap on the value of the invoices raised by them. In our considered view, this is a correct .....

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of goods produces, it is the same i.e. duty on value of mould is to be recovered, which in this case has already discharged by the assessee - No demand can be made - Decided in favor of assessee. - Appeal No. E/1338/05 - Dated:- 30-12-2015 - SHRI M.V. RAVINDRAN, MEMBER (JUDICIAL) AND SHRI C.J. MATHEW, MEMBER (TECHNICAL) For the Petitioner : Shri Ajay Kumar, Jt. CDR For the Respondent : None ORDER Per: M.V. Ravindran Revenue is in appeal against Order-in-Appeal No. BR/19/TH-II/2005 dated 19.1.20 .....

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terms of provisions of Rules, 2001, more specifically rule 16 and where the processing could not be done on the finished goods, they scraped the articles by cutting them into two pieces and cleared such pieces as scrap on payment of Central Excise duty on the scrap value but are not reversing the amount of CENVAT Credit taken on the goods returned back. (ii) The respondent were clearing articles of rubber manufactured by them with the help of dies/mould on payment of duty but were not consideri .....

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o be reversed while in the case in hand, the respondent has only paid the duty on the scrap which is less than the amount of CENVAT Credit availed. It is his further submission that the provision of Rule 16(2) needs to be applied in its entirety. 4.2 As regards the non-inclusion of value of the dies and moulds of the finished goods cleared which were manufactured by such dies and moulds, it is the submissions that the judgment of the Larger Bench in the case of Mutual Industries Ltd. Vs. Commiss .....

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ch mould needs to be confiscated. 5. The written submissions filed by the respondent indicate that when they received the goods returned by the purchaser, they tried to process the same and sent it back. During the process, some of the finished goods are self-destroyed which are cleared as scrap and such scrap arose during the course of manufacture. It is submission that 99% of time the finished goods are reprocessed and 1% of the time, the process undertaken resulted in scrap. He would submit t .....

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ation cost, they have paid the excess duty and one time basis on additional consideration of ₹ 33,82,762/- received from buyers towards the cost of moulds which were manufactured by use or got manufactured from other manufacturers. 6. We have considered the submissions made at length by both sides and perused the records. 6.1 We find that the first appellate authority has upheld the contentions of the assessee on the provisions of applicability of Rule 16 of Central Excise Rules. The said .....

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