https://www.taxtmi.com/caselaws?id=3766 Returned duty-paid defective goods reprocessed and cleared to a 100% export oriented unit could retain credit under Rule 16 of the Central Excise Rules, 2002 on these facts, because the recipient was an exempt EOU and the procedural lapse in not first seeking permission was treated as condonable. The demand founded on compulsory reversal of that credit was therefore not sustainable. The record also showed no intent to evade duty: the goods had originally been cleared on payment of duty, suppression was not established, and the extended limitation period could not be invoked. As the demand failed, the penalty under Rule 25 and section 11AC also fell away. en-us Fri, 28 Sep 2007 00:00:00 +0530 Mon, 28 Apr 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3766 Returned duty-paid defective goods reprocessed and cleared to a 100% export oriented unit could retain credit under Rule 16 of the Central Excise Rules, 2002 on these facts, because the recipient was an exempt EOU and the procedural lapse in not first seeking permission was treated as condonable. The demand founded on compulsory reversal of that credit was therefore not sustainable. The record also showed no intent to evade duty: the goods had originally been cleared on payment of duty, suppression was not established, and the extended limitation period could not be invoked. As the demand failed, the penalty under Rule 25 and section 11AC also fell away. Case-Laws Central Excise Fri, 28 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3766