TaxTMI 
TaxTMI 
2023 (11) TMI 369
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....hicles fitted with engine and parts thereof falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985. The chassis manufactured are sold by the appellants to customers either through their regional sales depots located at various places or by direct sales from the factory gate. The appellants intimated the Department from time to time regarding the receipt of duty-paid chassis inside the factory premises for undertaking certain activities in terms of Rule 16 of the Central Excise Rules, 2002. 1.2 At the time of receipt of such goods under Rule 16, the appellant availed credit of the duty paid on such chassis as CENVAT Credit in their accounts, as under Rule 16(1) of the Central Excise Rules, 2002. The vehicles....
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....onfirmed the demands along with interest and imposed penalty. 5. On appeal, the Commissioner (Appeals) vide order impugned herein upheld the same. Hence, these appeals. 6.1 On behalf of the appellants, Shri M. Kannan, Ld. Counsel, appeared and argued the matter. He adverted to Rule 16 of the Central Excise Rules, 2002 and submitted that there is no embargo in the said Rules for export of the goods which were received into the factory under Rule 16; the Department alleges that the appellants have to reverse the credit availed by them while the goods are brought into the factory, under Rule 16, though the goods after repair have been exported or cleared under exemption Notification No. 108/1995-C.E. 6.2 The provisions of Rule 6(6)(iv....
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....erse the credit availed by them under Rule 16 of the Central Excise Rules, 2002 when the goods are exported or cleared under exemption Notification No. 108/1995-C.E. dated 28.08.1995. 10.1 On perusal of the Show Cause Notices, it is seen that the main allegation raised by the Department is that as the credit is availed by the appellants under Rule 16 of the Central Excise Rules, 2002, they cannot remove the goods for export or clear the same under exemption Notification No. 108/1995-C.E. without reversing the credit. 10.2 Rule 16 makes it amply clear that the credit is availed in terms of the CENVAT Credit Rules, 2004. There is no embargo envisaged under Rule 16 for export of the goods or for clearance under the exemption Notification....
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.... the Tribunal held as under: - "3. The Ld. Counsel appearing for the appellants mainly submitted on the following lines :- ... (e) It is also submitted that certain numbers of chassis were in fact cleared under Notification No. 108/95 where no duty liability will arise based on end use. Similarly, clearances were made to EOU and some were also exported. Here also no duty liability will arise irrespective of the finding on the above dispute. .... .... .... .... .... 6.3 Regarding the claim of the appellants that certain numbers of returned chassis upon removal of defects, have been cleared either on physical exports out of country or to supply to EOU or supply u....