2008 (1) TMI 780

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....Heading No. 8409 of the Schedule to the Central Excise Tariff Act, 1985. The Respondent cleared the goods on payment of concessional rate of duty under small scale exemption notification, which were returned by the buyer as defective goods on payment of higher rate of duty. The Respondent availed the credit of the whole duty paid by the buyer under Rule 16 of Central Excise Rules, 2000. The adjudicating authority denied the credit availed by the Respondent on the ground that the Respondents are entitled to avail the credit which were paid by them at the time of removal of the goods from their factory and imposed penalty. The Commissioner (Appeals) set aside the adjudication order. Hence, the Revenue filed this appeal before the Tribunal. ....

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....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 the CENVAT Credit Rules, 2002 and utilize this credit according to the said rules". [emphasis supplied] 6. Rule 16(1) of the said Rules provides that the assessee shall be entitled to take cenvat credit of the duty paid as if such goods received as inputs under the Cenvat Credit Rules, 2002. In the present case, it is seen that the Respondent availed the credit of the duty paid by the supplier in their central excise invoice which specified....