2017 (10) TMI 187

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Superintendent (AR) for the respondent ORDER The dispute in this appeal of M/s Classic Stripes Pvt Ltd against order-in-appeal no: MI/AV/228-229/2011 dated 21st April 2011 of the Commissioner of Central Excise (Appeals - II), Mumbai Zone I pertains to availment of CENVAT credit on goods returned to the appellant under rule 16 of Central Excise Rules, 2002. Appellant is a manufacturer of se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ry of 12,33,931/- being the CENVAT credit availed on such returns which, having been scrapped eventually, were alleged it to have undergone the process of manufacture and, hence, ineligible to applicability of rule 16 of Central Excise Rules, 2002. The original authority confirmed this demand, along with appropriate interest, besides imposing a penalty of like amount on the appellant under rule 25....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ly because scrap was generated along with finished goods and that the present situation is no different. Learned Counsel has placed reliance on Commissioner of Central Excise, Mumbai I v. Mega Rubber Technologies Pvt Ltd [2016 (343) ELT 384 (Tri.Mumbai)] which has referred to the decision of the Tribunal in Sundaram Industries Ltd v. Commissioner of Central Excise, Madurai [2006 (202) ELT 538 (Tri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....accounted for in the books of the manufacturer. On the contrary, in the present instance, the scrapping of the self-adhesive stickers, payment of duty thereof, and inclusion of such details in the monthly returns are not controverted. In the absence of records of return and scrapping thereof, conclusion was appropriately arrived at that the goods had not been subject to clearance no payment of dut....