https://www.taxtmi.com/caselaws?id=90680 Modvat credit was claimed on duty paid at first clearance of aluminium extrusions that were later rejected by customers and returned. The applicants contended that the returned goods were further processed into fresh aluminium sections and treated as inputs, while the Department argued that no new manufacture resulted and that the goods fell only under the returned-goods procedure. The document notes two lines of authority: one allowing credit where rejected goods cease to be marketable as final products and undergo fresh manufacturing, and another confined to mere reconditioning and re-clearance. Because the competing decisions created a genuine legal controversy, the question of law was held fit for reference to the High Court. en-us Fri, 20 Nov 1998 00:00:00 +0530 Mon, 10 Oct 2011 17:30:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=90680 Modvat credit was claimed on duty paid at first clearance of aluminium extrusions that were later rejected by customers and returned. The applicants contended that the returned goods were further processed into fresh aluminium sections and treated as inputs, while the Department argued that no new manufacture resulted and that the goods fell only under the returned-goods procedure. The document notes two lines of authority: one allowing credit where rejected goods cease to be marketable as final products and undergo fresh manufacturing, and another confined to mere reconditioning and re-clearance. Because the competing decisions created a genuine legal controversy, the question of law was held fit for reference to the High Court. Case-Laws Central Excise Fri, 20 Nov 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=90680