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TMI Blog2017 (7) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... and set aside the Order-in-Original, against which the appellant has filed the appeal. Since the issue in both the appeals is common therefore, both the appeals are being disposed of by this common order. For the purpose of convenience, facts of the case of appeal No.E/437/20009 are taken. 2. Brief facts of the case are that appellants are engaged in manufacture and clearance of excisable goods viz., Stackers, Pallet Trucks, Electrical Platform Trucks, etc., falling under Chapter Heading 84 and 87 of Central Excise Tariff Act, 1985, and are also availing CENVAT Credit on the inputs and input services under CENVAT Credit Rules, 2004. It is noticed from appellants records that certain finished goods were removed for demonstration purpose on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore, the appellant was duty bound to remove the duty paid returned goods in terms of Second Part of Rule 16(2). He further submitted that Rule 16(2) has two parts, viz., (i) if the process to which the goods are subjected before being removed does not amount to manufacture; the manufacturer shall pay an amount equal to the CENVAT credit taken under Rule 16(1); and (ii) in any other case, the manufacturer shall pay duty on goods received under Rule 16(1) at the rate applicable on the date of removal and on the value determined under Section 3(2) or Section 4 or Section 4A of the Act as the case may be. He further submitted that in the appellant's case, the first part of Rule is not applicable as the appellant have not carried o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it availed and not payment of duty as per transaction value. For the purpose of deciding the case, it is necessary to reproduce the Rule 16 which is reproduced herein below: "Rule 16(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, reconditioned 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. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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