Rule 16(2) of Central excise act

If the process does not amount to manufacture, the only thing you are required to do is reverse the cenvat credit taken as per rule 16(1). The payment of duty is applicable is only when you took the credit at the time of arrival of the goods in the factory and the same is treated as an inputs under cenvat credit rules, there after when the goods of removed after remade, refined, recondition etc. then on the date of removal applicable duty as to be paid.

In terms of the explanation inserted under Rule 16(2), the amount paid under this sub-rule shall be allowed as CENVAT credit as f it was a duty paid by the manufacturer who removes the goods. In such a case, then the duty is to be discharged as per the provisions of Rule 8 only.