https://www.taxtmi.com/caselaws?id=93635 Bearings manufactured under Chapter 84 and later deliberately hammered and broken were not treated as ferrous waste and scrap under Heading 72.04 for exemption under Notification No. 171/88-C.E., because the scrap did not arise in the course of manufacture but from post-manufacture conversion of finished goods. Where input Modvat credit had been taken and the finished goods were cleared as exempt scrap, the credit had to be reversed. The objections that the demand travelled beyond the show cause notices and was time-barred were rejected because the notices covered the exemption and credit issue, and the classification record did not correctly describe the nature of the scrap. en-us Thu, 08 Jun 2000 00:00:00 +0530 Mon, 14 Nov 2011 17:42:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=93635 Bearings manufactured under Chapter 84 and later deliberately hammered and broken were not treated as ferrous waste and scrap under Heading 72.04 for exemption under Notification No. 171/88-C.E., because the scrap did not arise in the course of manufacture but from post-manufacture conversion of finished goods. Where input Modvat credit had been taken and the finished goods were cleared as exempt scrap, the credit had to be reversed. The objections that the demand travelled beyond the show cause notices and was time-barred were rejected because the notices covered the exemption and credit issue, and the classification record did not correctly describe the nature of the scrap. Case-Laws Central Excise Thu, 08 Jun 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=93635