https://www.taxtmi.com/caselaws?id=4128 Returned goods cleared as scrap without any manufacturing process were held liable to reversal of the Cenvat credit taken on those goods under Rule 16(2) of the Cenvat Credit Rules, 2002. The dispute turned on the absence of reconditioning or other manufacturing activity, which meant the credit could not be retained when the goods were simply sold as scrap. Penalty was nevertheless found unwarranted because the issue involved a bona fide interpretative dispute, so relief was granted from the penal consequence while sustaining the duty demand. en-us Fri, 18 Jan 2008 00:00:00 +0530 Fri, 23 May 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4128 Returned goods cleared as scrap without any manufacturing process were held liable to reversal of the Cenvat credit taken on those goods under Rule 16(2) of the Cenvat Credit Rules, 2002. The dispute turned on the absence of reconditioning or other manufacturing activity, which meant the credit could not be retained when the goods were simply sold as scrap. Penalty was nevertheless found unwarranted because the issue involved a bona fide interpretative dispute, so relief was granted from the penal consequence while sustaining the duty demand. Case-Laws Central Excise Fri, 18 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4128