2009 (7) TMI 389

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.... Purpose Cream' to M/s. Calcutta Chemical Co. Ltd. on payment of Basic Excise Duty (BED) as also on payment of Special Excise Duty (SED). The said goods were rejected by their buyers and returned to the appellant for re-labelling. The appellants took the credit of duty originally paid by them at the time of clearance of the goods. The dispute in the present appeal relates to availing of credit of SED on goods, at the time of clearance to the extent of Rs. 7,58,560/-. 3. It may be clarified that there is no dispute about return of the rejected goods and the BED originally paid by the appellant stand allowed to them as credit, without any objection by the Revenue. The objection about credit of SED is on the ground that at the time of receipt....

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....the goods from the buyer's premises, no SED was leviable, the credit of the same would not be available to the appellant even if the buyer has paid the SED. As regards limitation, he reiterates the findings of authorities below by submitting that the appellant had not shown separate duty in their return. 5. After carefully considering the submissions made by both sides, I find that in terms of Rule 16(1), where any goods on which the duty has been "paid" (emphasis provided), at the time of removal thereof are subsequently returned to the factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall take the particulars of such returns in record and shall be entitled to have Cenvat credit of duty "paid" (em....