2012 (10) TMI 587

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..... Ms. D.M. Durando, Deputy Commissioner, for the Respondent. [Order]. -  The appellant are in appeal along with stay application. 2. After hearing both the sides, it is observed that the appeal itself can be disposed of at this stage. Therefore, after waiving the requirement of pre-deposit, the appeal is taken up for disposal. 3. The facts of the case are that the app....

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....l credit of duty paid by him on clearance of goods which were returned back as defective by their customer. A show cause notice was issued for demand of duty on this availment of CENVAT credit under Rule 16 of Central Excise Rules, 2002. Both the lower authorities confirmed the duty along with interest and penalty. Therefore the appellant are before me. 4. Shri Mihir Deshmukh advocate/lear....

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....ey are not entitled to take credit at a later stage. 6. Heard both the sides. After hearing both the sides, I find that the issue relates to, at which point of time the appellant are entitled to take credit on the goods returned as defective which were cleared by the appellant on payment of duty under Rule 16 of the Central Excise Rules, 2002. For better appreciation Rule 16 of the Central....

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....uty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of Section 3 or Section 4 or Section 4A of the Act, as the case may be. [Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.] (3) If there is any diffi....