2016 (10) TMI 672

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....ants returned as such alongwith original and duplicate copies of invoice issued by them; (b) CPTs returned by customer who availed credit but on return of CPTs reversed credit and issue invoices to cover the same; and (c) CPTs returned from manufacturer of colour television. The manufacturers of television sell the TV to the customers. In case of defect the TVs are sent to different service centres of the manufacturers. Defective CPTs are returned by these service centres under challan which are not duty paying document. Proceedings were initiated against the appellant by issuing two show cause notices covering the period March, 2007 to demand and recover an amount of Rs. 67,61,844/-. The proposal in the show cause notices are on t....

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....2 and utilise this credit according to the said rules." 3. The appellants submitted that out of the amount now in dispute is Rs. 41,77,136/- relates to credit availed on CPTs initially cleared to traders and service centres directly and returned by them. These traders and service centres have not availed any credit on these items as they are not registered with Central Excise department and are not involved in the manufacturing activities. Thus, the credit on these returned CPTs are clearly eligible for them. The CPTs returned have clear cross reference to the duty paying documents under which these goods were originally cleared. In such situation, the cenvat credit availed by the appellant on the basis of their triplicate copies of invo....

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....d etc. It was also mentioned that when the goods are rejected and returned by the buyer without availing cenvat credit at his end credit thereon may be taken by the recipient of original manufacturer based on the document under which the goods were returned or the office copy of his own duty paid document under which the goods were initially sent. He should however ensure that the buyer has not taken any credit at his end. The Board vide Circular dated 25.11.2009 also clarified that Rule 16(1) allows the assessee to take credit on its own invoice. It was further clarified that in any case the whole procedure is revenue neutral in the sense as the duty has to be discharged by the 5th of next month. Further, Board vide Circular dated 13.12.20....