2008 (11) TMI 232

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....sultant, for the Appellant. Shri M.K.A.K. Mohiddin, JDR, for the Respondent. [Order]. - M/s. Sundaram Textiles Limited, appellants herein, are engaged in the manufacture of cotton yarn. They had received back a consignment of yarn cleared on payment of duty. They availed credit of duty paid on the said goods in terms of Rule 16 of the Central Excise Rules, 2002 (CER). Subsequently the final ....

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.... of Rs. 63,380/-under Section 11A(1) of the Central Excise Act read with Rule 12 of CER, 2002 and Rule 14 of the CER, 2004 along with interest due in terms of Section 11AB of the Act and the above Rules. 2. Heard both sides. The impugned demand flows from the following Rule, namely, Rule 16 (1) of CER :- "Rule 16. Credit of duty on goods brought to the factory :- (1)  &nbs....

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....ty liability in terms of Notification No. 30/2004 dated 9-7-2004. The impugned demand is on the basis that the final products received back by the assessee were inputs and the entire credit relatable to the returned goods had to be reversed when the final products of the appellants became exempt. I find that Rule 16(1) of CER provides for an assessee availing credit when it receives duty paid good....