2008 (8) TMI 353

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Shri D.S. Negi, SDR, for the Respondent. [Order]. - After hearing both sides, I find that the appellant originally cleared the Crankshafts to their customer on payment of duty, which were rejected by their customer brought back to the factory for further processing, in term of Rule 16(1) of Central Excise Rules, 2002. The appellant was allowed to take Modvat credit of duty paid on the said....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e and scrap. As per the provisions of Rule 16, when no process is undertaken on the returned finished goods the appellants shall have to reverse equal amount of credit availed by them at the time of clearance of the said, goods. Whereas it is noticed that the appellants have not carried out any destruction of rejected finished goods but conveniently changed the nomenclature as waste and scrap to s....