Rule 16 excise

Sales return can be best example.

The duty paid at the time of clearance of goods can be taken as credit if there is any sales return out of that slot. And again if you do some modifications, again wen u sell such goods, u hav to pay exices duty. !!!!!

Rule 16 allows credit for goods which are returned. If you resell without process amounting to manufacture then, duty reversal is to be done. If process amounts to manufacture then pay duty based on transaction value.

It is not allowed in the rule to avail credit if process does not amounts to manufacture. Hence, you cannot avail the credit