https://www.taxtmi.com/caselaws?id=35040 Rule 16(1) of the Central Excise Rules, 2002 allows duty-paid goods returned to the factory to be taken into CENVAT credit as if received as inputs, but it does not require those returned goods to be treated as inputs for every later purpose after credit is taken. Where the assessee had already reversed credit attributable to inputs in stock, work-in-progress and finished goods when the final products became exempt, a further demand to reverse credit on the returned yarn merely because the final products later became exempt was not sustainable. The issue was decided in favour of the assessee. en-us Tue, 25 Nov 2008 00:00:00 +0530 Wed, 09 Dec 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35040 Rule 16(1) of the Central Excise Rules, 2002 allows duty-paid goods returned to the factory to be taken into CENVAT credit as if received as inputs, but it does not require those returned goods to be treated as inputs for every later purpose after credit is taken. Where the assessee had already reversed credit attributable to inputs in stock, work-in-progress and finished goods when the final products became exempt, a further demand to reverse credit on the returned yarn merely because the final products later became exempt was not sustainable. The issue was decided in favour of the assessee. Case-Laws Central Excise Tue, 25 Nov 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35040