TMI Blog2018 (8) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose. Even if no activity is carried out, the transaction is squarely covered by Rule 16. Therefore, the purpose is not significant for availing the CENVAT credit in Rule 16. The appellant have not violated or contravented any such provision as regard Rule 16 - credit allowed - appeal allowed - decided in favor of appellant. - Appeal No.: E/10840/2018-SM - A/11347/2018 - Dated:- 15-6-2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. 2. Sh. S. J. Vyas, Ld. Counsel appearing on behalf of the appellant submits that the main reason for denial of credit is that the customer who returned the goods have not shown the purpose for which it is returned. His submission is that Rule 16 does not provide that the reason should be mentioned by the customer who returns the goods. Therefore on this ground, the credit should not be denie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing on behalf of the Revenue reiterates the finding of the impugned order. He submits that since the appellant has not shown the transaction in the ER-I return, it cannot be ascertained whether the appellant have discharged the Excise duty on the reissue of goods. Therefore, non mentioning in the ER-I return is not mere a technical lapse. Therefore, the lower authorities have rightly denied t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the receipt have been accounted for in their records. Even if the transaction has not been mentioned in the ER-1 return but the adjudicating authority as well as the Commissioner (A) verified the correlation chart which has record of the CENVAT credit even in terms of Rule 16, transaction has to be recorded in the CENVAT account for return of the goods reissued thereof and the duty credit is show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account. Credit to be availed and as when the returned goods is cleared, the duty equivalent to CENVAT credit, in the case when the activity does not amount to manufacture to be paid and in the case where the activity amounts to manufacture, the assessee should pay the duty as per the valuation provision of the Central Excise Act. Therefore, I do not see any reason in the given facts that appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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