2009 (10) TMI 274

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...., JDR, for the Respondent. [Order]. - The brief facts of the case are that during the period July, 2001 to June 2005, the assessees who are manufacturers of rough steel forgings and availing CENVAT credit on inputs and capital goods used in the manufacture of final products, received back some forgings rejected by their buyers on payment of duty and the assessees took CENVAT credit under Rule 1....

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.... and brought back to the factory and converted into scrap. The Commissioner (Appeals) has relied upon a decision of the Tribunal in Menon Piston Rings Pvt. Ltd. v. CCE, Pune - 2007 (211) E.L.T. 394, the relevant portion of which is reproduced herein below:- "Rule 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty had been paid at the time of removal thereof ....

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....ase may be. On merits, the issue stands decided against the assessees by Tribunal's order in the case of CCE, Jaipur-I v. RFH Metal Castings (P) Ltd., 2005 (184) E.L.T. 194, holding that the process undertaken for reducing defective goods to scrap did not amount to manufacture. Therefore, as per Rule 16(2), the assessee is required to pay an amount equal to Cenvat credit taken under sub-rule (1....

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....ap without undergoing any reprocessing. Therefore, the ratio of the Tribunal's decision in RFH Metal Castings (P) Ltd. (supra) relied upon in Menon Piston Rings Pvt. Ltd. (supra) are applicable on all fours to the facts of the present and following the same I uphold the finding of the lower appellate authority that credit is required to be reversed. 5. As regards the plea of time-bar raised by ....