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M/s Hotline CPT Limited Versus CCE, Indore

Denial of CENVAT credit - Rule 16 of Central Excise Rules, 2002 - manufacture of Colour Picture Tubes (CPT) - return of defective CPT - whether the denial of cenvat credit availed on returned defective CPTs mainly on the ground that no co-relation could be made between the originally cleared CPTs and the returned CPTs as also there is no proper duty paid document based on which the credit can be availed by the appellant is justified? - Held that: - there is no evidence to the effect that the .....

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re to be eventually cleared and accounted for in terms of the aforesaid rules. - There is no double benefit as the credit availed by the manufacturer of TV is forming part of duty paid on the whole TV. As such the picture tube credit availed by the manufacture of TV is duly accounted for. When the defective picture tubes are received back by the appellant, they are entitled for the credit as the challan under which the same are received has got cross reference to the original clearance docum .....

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e Tubes (CPTs) for television liable to Central Excise duty. Some of the CPTs are received back by the appellants as they were defective, such return of CPTs are from three sources: (a) CPTs cleared by the appellants returned as such alongwith original and duplicate copies of invoice issued by them; (b) CPTs returned by customer who availed credit but on return of CPTs reversed credit and issue invoices to cover the same; and (c) CPTs returned from manufacturer of colour television. The manufact .....

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een the CPTs cleared by the appellants and received from the service centre in the absence of duty paying documents and identification on CPT; twice cenvat credit has been taken on the same goods, once by the manufacture of TV and second time by the appellant on receipt of defective CPTs; the defective CPTs received from service centres are not accompanied by any duty paying documents and credit taken on photocopies of own invoice is not legally tenable. The original authority adjudicated the ca .....

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RULE 16. Credit of duty on goods brought to the factory. (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules. 3. The .....

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to the duty paying documents under which these goods were originally cleared. In such situation, the cenvat credit availed by the appellant on the basis of their triplicate copies of invoice is correct. 4. Regarding denial of credit on CPTs initially cleared to OEM manufacturers of TV and returned from service centres, the appellants stated that these duty paid CPTs were returned with reference to the invoice numbers which are mentioned in the challan of the service centres. The service centres .....

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ounds for denial of credit is identity of the returned goods as well as lack of proper documents. We also find that various field formation have issued detail trade notices in terms of power vested under Rule 16 (3) of the Central Excise Rules, 2002 prescribing detailed procedure to be followed. For instance, Commissioner of Central Excise, Mysore Trade Notice No. 21/2004 dated 11.05.2004 and Trade Notice No. 14/2002 dated 13.02.2002 of Commissioner of Central Excise, Chennai-III. The procedure .....

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ich the goods were initially sent. He should however ensure that the buyer has not taken any credit at his end. The Board vide Circular dated 25.11.2009 also clarified that Rule 16(1) allows the assessee to take credit on its own invoice. It was further clarified that in any case the whole procedure is revenue neutral in the sense as the duty has to be discharged by the 5th of next month. Further, Board vide Circular dated 13.12.2001 clarified that return need not be interpreted strictly. Receip .....

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