CESTAT Allows CENVAT Credit as Rule 16 Not Requires Goods to Be Returned to Same Buyer

Grafica Flextronica Vs Commissioner of GST & CE (CESTAT Mumbai) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, allowed the appeal filed by the assessee and set aside the orders confirming recovery of CENVAT credit amounting to Rs. 23,40,974, along with interest and equal penalty. The Tribunal held that the credit availed under Rule 16 of the Central Excise Rules, 2002 was admissible, as there was no requirement under Rule 16(2) that remanufactured goods must be returned to the same customer who had originally returned the defective goods. The dispute arose when th...