2006 (5) TMI 23

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....he period January-June 2003, some of these products were found defective and returned by the buyers, whereupon the appellants took Cenvat credit of the duty originally paid on the goods, and reprocessed the goods, which activity however yielded only scrap. This scrap was cleared on payment of duty. According to the department, the activity undertaken by the appellants on their defective final prod....

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....I find that, on a similar set of facts, this Tribunal has decided in favour of the assessee in the case of Commissioner v. TATA SSL Ltd. - 2005 (191) E.L.T. 799 (Tri. Mumbai). In that case, the respondents manufactured and cleared their final product (iron & steel wires) on payment of duty. The goods received by some of their buyers were found defective and hence returned. Upon receipt of such goo....

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.... applicable to the present case is not relevant to the cited case. Ld. SDR contextually refers to Rules 173H and 173L which were in force during the period of dispute involved in the cited case. I, however, find that, in the cited case, the department was invoking Rule 57F(3) and not any of the rules presently cited by ld. SDR. The fact highlighted by ld. SDR is that the defective goods returned b....