https://www.taxtmi.com/caselaws?id=86513 Defective electrical stampings and laminations returned by customers were treated as scrap because the goods were described as defective and scrap in all forms had been declared in the assessee's Rule 57G declaration, making them eligible inputs for Modvat credit. Clearance of those goods by the customer under Rule 57F(1)(ii) on payment of duty as finished goods did not change their character when received back and used in manufacture, so it did not bar credit. The consequence was that Modvat credit on the returned defective goods was admissible and the disallowance by the lower authorities was set aside. en-us Thu, 28 Nov 1996 00:00:00 +0530 Thu, 25 Aug 2011 12:52:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=86513 Defective electrical stampings and laminations returned by customers were treated as scrap because the goods were described as defective and scrap in all forms had been declared in the assessee's Rule 57G declaration, making them eligible inputs for Modvat credit. Clearance of those goods by the customer under Rule 57F(1)(ii) on payment of duty as finished goods did not change their character when received back and used in manufacture, so it did not bar credit. The consequence was that Modvat credit on the returned defective goods was admissible and the disallowance by the lower authorities was set aside. Case-Laws Central Excise Thu, 28 Nov 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=86513