https://www.taxtmi.com/caselaws?id=792934 Rule 16 of the Central Excise Rules, 2002 allows credit on duty-paid goods returned for remaking, refining or reconditioning, and does not impose an additional condition that the reprocessed goods must be sent back to the same buyer. Rule 16(2) requires duty payment or reversal depending on whether the subsequent process amounts to manufacture. A demand based only on the fact that the goods were not returned to the original customer cannot be sustained, and an objection going beyond the show cause notice is impermissible. On the facts stated, the credit was admissible and the demand, interest and equal penalty failed. en-us Wed, 03 Jun 2026 00:00:00 +0530 Fri, 05 Jun 2026 12:28:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792934 Rule 16 of the Central Excise Rules, 2002 allows credit on duty-paid goods returned for remaking, refining or reconditioning, and does not impose an additional condition that the reprocessed goods must be sent back to the same buyer. Rule 16(2) requires duty payment or reversal depending on whether the subsequent process amounts to manufacture. A demand based only on the fact that the goods were not returned to the original customer cannot be sustained, and an objection going beyond the show cause notice is impermissible. On the facts stated, the credit was admissible and the demand, interest and equal penalty failed. Case-Laws Central Excise Wed, 03 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792934