https://www.taxtmi.com/caselaws?id=85044 MODVAT credit was held inadmissible where defective goods returned by customers were dismantled in the factory and only retrieved parts were used in making fresh goods. The dismantling and scraping of the returned items was not treated as manufacture, nor as a process integrally connected with manufacture. As the returned goods themselves were not used as inputs in or in relation to the final product, the MODVAT conditions were not satisfied. The appropriate remedy for such returned defective goods lay under the special provisions governing re-entry and repair of goods. en-us Mon, 12 Feb 1996 00:00:00 +0530 Tue, 02 Aug 2011 14:46:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=85044 MODVAT credit was held inadmissible where defective goods returned by customers were dismantled in the factory and only retrieved parts were used in making fresh goods. The dismantling and scraping of the returned items was not treated as manufacture, nor as a process integrally connected with manufacture. As the returned goods themselves were not used as inputs in or in relation to the final product, the MODVAT conditions were not satisfied. The appropriate remedy for such returned defective goods lay under the special provisions governing re-entry and repair of goods. Case-Laws Central Excise Mon, 12 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=85044