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of <h1>CESTAT allows Modvat credit on defective goods returned for re-use in manufacturing</h1> <h3>SUNFLAG IRON & STEEL CO. LTD. Versus COMMISSIONER OF C. EX., NAGPUR</h3> SUNFLAG IRON & STEEL CO. LTD. Versus COMMISSIONER OF C. EX., NAGPUR - 2005 (192) E.L.T. 543 (Tri. - Mumbai) The Appellate Tribunal CESTAT, Mumbai ruled that Modvat credit is admissible on defective goods returned to the factory and re-used as inputs in the manufacture of final products after re-melting. The duty and penalty were set aside, and the appeal was allowed.
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