2017 (12) TMI 268

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.... Ramesh Nair The fact of the case is that the appellant have received defective pipes which were cleared by them on payment of duty. After return of defective goods the appellant have carried out process such as straightening, dimension checking, heat treatment, lacquer quoting etc. and after such process the pipes were cleared on payment of duty on the transaction value treating the process as....

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....hey have availed the credit on returned goods as if it is input in terms of Rule 16(1) of Central Excise Rules, 2002 and after various processes. It was cleared on payment of duty on the value arrived at under Section 4 of the Act, even though the duty paid on the process goods is lower than the cenvat credit differential duty cannot be demanded as in terms of Rule 16(2) when the activity of the p....

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....998 (102) E.L.T. 479 (Tribunal) 3. Shri Ajay Kumar, Ld. Addl. Commr. (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that whatsoever process carried out by the appellant, it does not amount to manufacture as the defective pipe was received and after rectification the same pipes were returned therefore there no manufacturing process. He further....

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....s in the show cause notice is that the appellant on the returned goods carried out the processes such as straightening, dimension checking heat treatment, lacquer quoting etc. these processes do not amount to manufacture. As regard the claim of the appellant that they have carried out re-drawing of the pipes and also galvanizing process which is only a submission made by the appellant, however no ....