2010 (6) TMI 786

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....s engaged in the manufacture of BOPP films. In the subject case, the appellant received rejected final products in their factory for reprocessing/manufacture etc which had earlier been cleared on payment of duty. They availed Cenvat Credit of the said duty in terms of Rule 16 of Central Excise Rules, 2002. The said rejected goods were subjected to cutting etc. and as a result, a portion became was....

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.... from the rejected finished goods on which Cenvat Credit was taken and scrapping of BOPP films by cutting etc. does not amount to manufacture, by virtue of Rule 16(2) of Central Excise Rules, 2002, the appellants were required to clear the said waste & scrap on payment of amount equal to the Cenvat Credit taken on such rejected BOPP films (from which the said scrap was obtained). It is pertinent t....