Cenvat credit on moulds and dies remained admissible when goods returned and credit was taken within the prescribed period.

Cenvat credit on moulds and dies sent to a job worker was held admissible where the goods were later received back in the factory and credit was taken within six months of payment of duty. The earlier duty payment arose because the moulds and dies were not received back within the extended period, but once they were returned and the credit claim was made within the prescribed time, the condition under Rule 9 of the Cenvat Credit Rules, 2004 was satisfied. No legal infirmity was found in allowing the credit, and the Revenue's challenge failed.

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Issues: Whether credit was admissible in respect of moulds and dies sent to a job worker and received back after the duty had been paid pursuant to the earlier adjudication, when the credit was availed within six months of such payment.

Analysis: The respondents had paid duty because the moulds and dies were not received back within the extended period. When the goods were subsequently received back in the factory, the respondents took credit within six months from the date of payment of duty. In these circumstances, the condition under Rule 9 of the Cenvat Credit Rules, 2004 was satisfied and no legal infirmity was found in allowing the credit.

Conclusion: The credit was admissible and the Revenue's appeal failed.

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