https://www.taxtmi.com/caselaws?id=84056 Modvat credit was treated as admissible on defective and rejected forgings returned by customers, because the returned metallic goods were received on duty debit and were to be remelted and converted into forgings again. Applying Rule 57A of the Central Excise Rules, 1944, the decisive test was whether the material was used in or in relation to manufacture of the final product, and the goods were regarded as scrap used in manufacture for that purpose. The Board's instruction supporting credit for defective metallic products returned for remanufacture reinforced this view, and the Revenue's reliance on an earlier decision was held distinguishable on its facts. en-us Sat, 06 Mar 1993 00:00:00 +0530 Tue, 19 Jul 2011 15:36:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84056 Modvat credit was treated as admissible on defective and rejected forgings returned by customers, because the returned metallic goods were received on duty debit and were to be remelted and converted into forgings again. Applying Rule 57A of the Central Excise Rules, 1944, the decisive test was whether the material was used in or in relation to manufacture of the final product, and the goods were regarded as scrap used in manufacture for that purpose. The Board's instruction supporting credit for defective metallic products returned for remanufacture reinforced this view, and the Revenue's reliance on an earlier decision was held distinguishable on its facts. Case-Laws Central Excise Sat, 06 Mar 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84056