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2016 (1) TMI 157 - CESTAT MUMBAI

2016 (1) TMI 157 - CESTAT MUMBAI - 2016 (343) E.L.T. 384 (Tri. - Mumbai) - 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 c .....

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overed by amortising the cost 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 - Final Order No. A/4000/2015-WZB/EB - 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 .....

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back from their customer and availing CENVAT Credit on the same in 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 wit .....

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on the returned goods, CENVAT Credit availed on such goods needs to 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 .....

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and penalty is to be imposed and the goods manufactured out of such 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 .....

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ost of final product, it is his submission that instead of amortization 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 provisi .....

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