TMI Blog2016 (10) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... he factory after payment of duty on the transaction value of the scrap. It is the contention of the Department that the conversion of printed/unprinted corrugated boxes into scrap cannot be considered as a process of manufacture. Hence, the credit availed under Rule 16(1) is required to be reversed. I do not find any discrepancy in the observation of the learned Commissioner (Appeals) in this regard, in as much as the provisions of the said Rules are specific. In the present case, it cannot be said that the process by which the defective goods are converted into scrap, should be considered as manufacture within the definition of manufacture as laid down under Section 2(f) of Central Excise Act, 1944. Therefore, on merit, the Appellant has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the demand is barred by limitation. 4. The Ld AR for the Revenue reiterated the findings of the Ld Commissioner (Appeals). 5. This Tribunal on similar facts and facts and circumstances observed as under: 6. I find that the Appellant had received in their factory the defective duty paid goods for remaking, refining, reconditioning etc. It is not in dispute that the certain quantity of such defective goods were remade/reconditioned and cleared on payment of appropriate duty. However, the major portion of the returned goods was scrapped and cleared from the factory after payment of duty on the transaction value of the scrap. It is the contention of the Department that the conversion of printed/unprinted corrugated boxes into scra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the [Principal Commissioner or Commissioner, as the case may be]. 7. A plain reading of the said Rule make it clear that the process carried out on the returned defective goods, if does not result into manufacture, then the credit availed on the returned defective goods needs to be reversed. On the other hand, if the process results into manufacture, then the duty is required to be paid on the transaction value or the value arrived at under Section 4(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wers the Department to re-open proceedings if the levy has been short-levied or not levied within six months from the relevant date. But the proviso carves out an exception and permits the authority to exercise this power within five years from the relevant date in the circumstances mentioned in the proviso, one of it being suppression of facts. The meaning of the word both in law and even otherwise is well known. In normal understanding it is not different that what is explained in various dictionaries unless of course the context in which it has been used indicates otherwise. A perusal of the proviso indicates that it has been used in company of such strong words as fraud, collusion or wilful default. In fact it is the mildest expression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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