https://www.taxtmi.com/caselaws?id=1257 Rule 16 of the Cenvat Credit Rules, 2002 permits credit on duty-paid goods received back for re-making, refining or re-conditioning, but where returned piston rings were merely cut and converted into scrap, the process was treated as not amounting to manufacture and required reversal or payment equal to the credit taken. Non-disclosure of the scrapping process justified invocation of the extended period of limitation, and penalty was upheld on that basis. For the demand within the normal period, penalty was held unwarranted where the dispute turned on interpretation of the rule, resulting in partial relief on penalty but confirmation of the duty demand. en-us Fri, 02 Feb 2007 00:00:00 +0530 Mon, 14 Apr 2008 15:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1257 Rule 16 of the Cenvat Credit Rules, 2002 permits credit on duty-paid goods received back for re-making, refining or re-conditioning, but where returned piston rings were merely cut and converted into scrap, the process was treated as not amounting to manufacture and required reversal or payment equal to the credit taken. Non-disclosure of the scrapping process justified invocation of the extended period of limitation, and penalty was upheld on that basis. For the demand within the normal period, penalty was held unwarranted where the dispute turned on interpretation of the rule, resulting in partial relief on penalty but confirmation of the duty demand. Case-Laws Central Excise Fri, 02 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1257