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<h1>Appellate Tribunal upholds disallowance of credit on duty paid return goods. Interest imposed, penalty reduced.</h1> The Appellate Tribunal CESTAT, New Delhi upheld the disallowance of credit on duty paid return goods by the Appellant under Rule 16 of the Central Excise ... Cenvat/Modvat - Returned goods The Appellate Tribunal CESTAT, New Delhi found that the Appellant wrongly availed credit on duty paid return goods under Rule 16 of the Central Excise Rules, 2002. The goods were unfit for human consumption and not suitable for re-processing. The Tribunal upheld the disallowance of credit with interest and reduced the penalty to Rs. 10,000.