https://www.taxtmi.com/caselaws?id=83476 Modvat credit on duty-paid inputs used in dry battery cells rejected at final testing and inspection was held to remain available, because manufacture under Section 2(f) extends to processes incidental or ancillary to completion of the product and the RG 1 stage was reached only after such testing. Cells failing that stage were not complete marketable goods and, before destruction, constituted waste and scrap arising in the course of manufacture. Rule 57F(4)(c) supported destruction of the rejects, and Rule 57D(1) covered waste arising during manufacture of the final product. The disallowance of credit was therefore not justified, and the assessee was entitled to the credit and consequential benefits. en-us Thu, 03 Feb 1994 00:00:00 +0530 Wed, 13 Jul 2011 17:17:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=83476 Modvat credit on duty-paid inputs used in dry battery cells rejected at final testing and inspection was held to remain available, because manufacture under Section 2(f) extends to processes incidental or ancillary to completion of the product and the RG 1 stage was reached only after such testing. Cells failing that stage were not complete marketable goods and, before destruction, constituted waste and scrap arising in the course of manufacture. Rule 57F(4)(c) supported destruction of the rejects, and Rule 57D(1) covered waste arising during manufacture of the final product. The disallowance of credit was therefore not justified, and the assessee was entitled to the credit and consequential benefits. Case-Laws Central Excise Thu, 03 Feb 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=83476