TaxTMI 
TaxTMI 
2007 (4) TMI 460
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....acts of the case are that the applicants are engaged in the manufacture of aerated waters having several bottling plants located across the country. The present dispute is in respect of their plant located in Pune. The aerated waters manufactured by them are removed in returnable glass bottles and plastic crates which are purchased by them from glass/plastic crates manufacturer. The credit of duty on glass bottles/plastic crates is availed at the time of receipt of glass bottles and plastic crates from its manufacturers. Used glass bottles/plastic crates are brought back from the market after consumption of liquid beverages by the consumers and are reused for filling liquid beverages and at the time of bringing the used bottles/plastic crat....
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....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 are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take Cenvat credit of the duty paid as if such goods are received as inputs under Cenvat Credit Rules, 2002 and utilise this credit according to the said rules. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the Cenvat credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods r....
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....ase, the Commissioner has himself given a finding in para 26 of his order that the goods were not cleared as such, as they were received again and again for refilling and therefore applicability of sub-rule (4) and (5) of Rule 3 of Cenvat Credit Rules, 2002/2004 is ruled out. 5. Lastly, it was submitted that, in any case the exercise is revenue neutral as in case they are required to pay duty on the used bottles cleared by them, receiving unit would be entitled to equivalent Cenvat credit and therefore there is no loss of revenue. 6. The learned SDR submits that in this case, the bottles were usable and therefore credit originally taken on them has to be considered as credit taken under Rule 16(1) and was therefore required to b....