2009 (9) TMI 854

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....imposing penalty of equal amount on them was set aside. The respondent manufacture colour picture tubes. During the period from Sept'01 to April, 02, 460 colour picture tubes, which earlier had been cleared on payment of duty, were returned by the customers as defective. These defective colour picture tubes were received by the respondent for repair and intimation under D-3 form was submitted to the Deptt. and the same were cleared by the respondent without payment of duty, after repairs. Subsequently, whenever the respondent received defective picture tubes for repairs, as per the provisions of Rule 16(3) of Central Excise Rules, 2002, they opted to take Cenvat credit and clear the same on payment of duty. In respect of 460 colour picture ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ot amount to manufacture; that as per the provisions of Rule 16, a manufacturer in respect of receipt of defective goods for repairs has an option either to take Cenvat credit and thereafter at the time of removal of the goods, pay the duty equal to the Cenvat credit taken, or neither take Cenvat credit on returned goods nor pay any duty at the time of clearance after repairs, that in this case during period Sept.'01 to April'02, the respondent did not take Cenvat credit and for this reason at the time of removal, no duty was paid and that the duty demand, in any case, is time barred as the goods had been received and cleared during Sept. 01 to April'02 and at the time of each receipt, the necessary intimation to the Deptt. had been given i....