https://www.taxtmi.com/caselaws?id=87412 Modvat credit was held inadmissible on duty-paid defective bolts returned by a customer because the goods had already been manufactured and cleared on payment of duty, and the only activity in the factory was removal of defects, which did not amount to manufacture. As the returned goods were not used as inputs in or in relation to manufacture of finished products, the credit claim failed. The penalty, however, was set aside because the dispute turned on interpretation of Rule 57F(1) and legal construction, not on contumacious conduct. en-us Tue, 07 Oct 1997 00:00:00 +0530 Mon, 05 Sep 2011 17:33:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=87412 Modvat credit was held inadmissible on duty-paid defective bolts returned by a customer because the goods had already been manufactured and cleared on payment of duty, and the only activity in the factory was removal of defects, which did not amount to manufacture. As the returned goods were not used as inputs in or in relation to manufacture of finished products, the credit claim failed. The penalty, however, was set aside because the dispute turned on interpretation of Rule 57F(1) and legal construction, not on contumacious conduct. Case-Laws Central Excise Tue, 07 Oct 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=87412