2017 (10) TMI 1110

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....oad in Rajasthan and also at Satnoor in MP and are engaged in the manufacture of various types of polymers including Acrylonitrile Butadiene Styrene (ABS). The dispute in the present case is pertaining to the period March, 2008 to April, 2010. During this period customers of the BEPL returned certain quantity of ABS for various reasons to Abu Road factory in Rajasthan. Out of total quantity of 1988 MT of ABS returned, 1883 MT were received back from M/s. Jagruti Resins Pvt. Ltd. (JRPL), a major authorised dealer of BEPL. Upon receipt of ABS, M/s. BEPL availed cenvat credit amount to Rs. 4,20,27,336/- on the total quantity of 1551 MT received from M/s. JRPL and others. Such returned goods were used to manufacture ABS by mixing the same with ....

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....e Notice No. 57/2001 dated 01.02.2002 issued by Commissioner, Jaipur II relating to return of goods under Rule 16 of Central Excise Rules, 2002. (ii) After reprocessing of the returned goods, no new commodity has come into existence as Tariff Item of both returned goods as well as the emerged goods are one and the same. Accordingly, the Commissioner has held that at the time of clearing of reprocessed goods, M/s. BEPL was required to reverse the cenvat credit availed and not pay the duty at the prevalent rate at the time of removal. 6. The relevant Rule 16 of the Central Excise Rules, 2002 is reproduced below for ready reference: "RULE 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty had be....

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....the cenvat credit of the same. If the process to which goods are then subjected to, amounts to manufacture, the manufacturer is required to pay excise duty at the rate applicable on the date of removal. 8. There is no dispute of the fact that BEPL has mixed the returned ABS along with other virgin raw materials to remanufacture ABS. This fact has been confirmed by the statement of employees of BEPL recorded during investigation. It is also seen that BEPL has maintained records of receipt of ABS returned to the factory. The reprocessing has resulted once again in ABS, which, no doubt, is falling in the same CETH as the goods returned to the factory. However, from the process carried out in the factory, it is very clear that the same amoun....

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....ubmitted that such loading slips were prepared at the time of actual loading of goods into the vehicles and have mentioned the actual truck numbers. Accordingly, they asserted that M/s. BEPL has actually received the returned goods and were entitled to such cenvat credit. 11. On perusal of the record of the goods, we find that 436 MT of goods were originally cleared by M/s. BEPL to M/s. JRPL which were subsequently claimed to be returned. 40 invoices which accompanied the alleged returned goods were originally issued by M/s. BEPL at the time of initial clearance. At the time of return, GRs were issued by the transporter and the same are said to have accompanied the goods. The vehicle numbers indicated in such GRs indicated the vehicles t....