2007 (2) TMI 22

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....bility of credit on piston rings manufactured and initially cleared on payment of duty by the appellants and brought back to the factory and converted into scrap and sold, in terms of `Rule 16 of the Cenvat Credit Rules.' 2. I have heard both sides. Rule 16 of the Cenvat Credit Rules provides as under:- "RULE 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty....

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.... section 4 or section 4A of the Act, as the case may be." 3. On merits, the issue stands decided against the assessees by Tribunal's order in the case of CCE Jaipur-I v. RFH Metal Castings (P) Ltd., 2005 (184) E.L.T. 194, holding that the process undertaken for reducing defective goods to scrap did not amount to manufacture. Therefore, as per Rule 16(2), the assessee is required to pay an amount ....