Cenvat credit on rejected goods available as inputs

Crompton Greaves Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai)

Held that Rule 16 allows the assessee to avail the cenvat credit of duty paid on the goods cleared by them, as if such goods are received as inputs

Facts-

Appellant, engaged in manufacture of excisable goods, had received in their factory excisable goods i.e. transformers along with accessories for repair/rectification without original duty paying documents from their customers. The appellant had filed an intimation with the Range officer about the receipt of the said goods into their factory for repairs. Subsequently, the appellant availed Cenvat credit in their Cenvat account in respect of transformers into their factory on the strength of Xerox/photocopy of triplicate copy of their invoice under which the goods were originally cleared by the appellant on payment of duty.

The assessee was aware that when the customer from whom the goods were received for repairs does not have the original duty paying documents, they were so required to apply for permission under Rule 16(3), of the Central Excise Rules, 2002 and applied the same.

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