https://www.taxtmi.com/caselaws?id=356780 Duty-paid defective corrugated boxes returned to the factory for remaking, refinement or reconditioning qualify for Cenvat credit under Rule 16. Credit cannot be denied merely because the returned stock remains in the factory, since the duty liability on such goods arises only when they are removed after processing, not while they are still held in stock. The commentary notes that the appellate authority had accepted the availability of credit in principle and erred in disallowing it only on the ground of continued factory storage. The denial of credit was therefore incorrect, and credit was admissible on the returned goods. en-us Fri, 24 Nov 2017 00:00:00 +0530 Mon, 12 Mar 2018 06:57:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356780 Duty-paid defective corrugated boxes returned to the factory for remaking, refinement or reconditioning qualify for Cenvat credit under Rule 16. Credit cannot be denied merely because the returned stock remains in the factory, since the duty liability on such goods arises only when they are removed after processing, not while they are still held in stock. The commentary notes that the appellate authority had accepted the availability of credit in principle and erred in disallowing it only on the ground of continued factory storage. The denial of credit was therefore incorrect, and credit was admissible on the returned goods. Case-Laws Central Excise Fri, 24 Nov 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356780