https://www.taxtmi.com/caselaws?id=77693 Rule 16 permits credit on duty-paid goods returned to the factory only when those goods are actually reprocessed or reconditioned and cleared on payment of duty. Credit relating to returned goods that were not subjected to any process was not regular, and if such credit was utilised before reversal, interest was payable on that inadmissible portion. The credit attributable to goods that were duly reprocessed remained admissible. On penalty, the dispute was treated as a bona fide interpretational issue, so no penalty was leviable. en-us Tue, 01 Dec 2009 00:00:00 +0530 Mon, 04 Oct 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=77693 Rule 16 permits credit on duty-paid goods returned to the factory only when those goods are actually reprocessed or reconditioned and cleared on payment of duty. Credit relating to returned goods that were not subjected to any process was not regular, and if such credit was utilised before reversal, interest was payable on that inadmissible portion. The credit attributable to goods that were duly reprocessed remained admissible. On penalty, the dispute was treated as a bona fide interpretational issue, so no penalty was leviable. Case-Laws Customs Tue, 01 Dec 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=77693