TMI Blog2005 (7) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the words 'or subjected to any other similar process in the factory' as appearing in the erstwhile Rule 173C are replaced by the expression 'or for any other reason' in new Rule 16 of Central Excise Rules, 2002 covering the identical situation. The expression as appearing in Rule 16 is definitely of wider connotation. As such, it can be safely concluded that the rule does not require remanufacturing of goods exclusively out of the returned goods. The Commissioner (Appeals) has objected to the credit on the ground that the defective goods, after being cut into pieces has been mixed with the fresh raw material. However, reading of Rule 16 does not lay down any such debarring condition. It has been classified by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early co-related to the returned furniture, as the furniture is printed with the month of manufacture, Rule 16 of Central Excise Rules, 2002 permits taking of credit on the returned goods. Reliance was placed upon the Tribunal's judgments in the case of Gebbs India Pvt. Ltd., reported in 1996 (16) RLT 493 (Tri.) and Gujarat Containers Ltd. - 2000 (125) E.L.T. 495 (Tri.). 3. The above contentions were not accepted and the authorities below rejected the appellants claim of credit and confirmed the demand of duty of Rs. 4,25,838/- and also imposed personal penalty of identical amounts. The Commissioner (Appeals), while rejecting the appeal, observed as under : - I have carefully examined the case records including the Appellants submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid as if such goods are received as inputs under the Cenvat credit Rules, 2002 and utilise the credit according to the said rules. (2) In 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 sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) equal to the Cenvat credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) and the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. (3) If there is any d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is also noticed that the words 'or subjected to any other similar process in the factory' as appearing in the erstwhile Rule 173C are replaced by the expression 'or for any other reason' in new Rule 16 of Central Excise Rules, 2002 covering the identical situation. The expression as appearing in Rule 16 is definitely of wider connotation. As such, it can be safely concluded that the rule does not require remanufacturing of goods exclusively out of the returned goods. The Commissioner (Appeals) has objected to the credit on the ground that the defective goods, after being cut into pieces has been mixed with the fresh raw material. However, reading of Rule 16 does not lay down any such debarring condition. It has been classi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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