https://www.taxtmi.com/caselaws?id=84426 MODVAT credit under Rule 57A of the Central Excise Rules, 1944 is confined to inputs used in or in relation to manufacture, and the process must bring into existence a new and distinct commodity with a different name, character or use. Reprocessing duty-paid nylon chips into plain or coloured chips without such transformation was treated as not amounting to manufacture, so credit was not admissible on that activity. By contrast, conversion of plain or coloured chips into compounded chips raised a factual question on whether a distinct product emerged, and the matter was remanded for de novo consideration with the assessee bearing the burden of proving manufacture. en-us Wed, 26 Jul 1995 00:00:00 +0530 Thu, 21 Jul 2011 18:25:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84426 MODVAT credit under Rule 57A of the Central Excise Rules, 1944 is confined to inputs used in or in relation to manufacture, and the process must bring into existence a new and distinct commodity with a different name, character or use. Reprocessing duty-paid nylon chips into plain or coloured chips without such transformation was treated as not amounting to manufacture, so credit was not admissible on that activity. By contrast, conversion of plain or coloured chips into compounded chips raised a factual question on whether a distinct product emerged, and the matter was remanded for de novo consideration with the assessee bearing the burden of proving manufacture. Case-Laws Central Excise Wed, 26 Jul 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84426