Rule 16

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bhimrao kalu kadu (Querist)
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18 May 2010 Dear sir

we are going to sent Machine for Repairing which is Excisable,we have to sent it on Excisable Invoice under Rule 16.i dont know what is Rule 16 pl.guide me about Rule 16.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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18 May 2010 Rule 16.
Credit of duty on goods brought to the factory. -

(1)
Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.

(2)
If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be.

(3)
If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner

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