https://www.taxtmi.com/caselaws?id=95874 Modvat credit taken on duty-paid copper wire rods had to be reversed when the inputs were sold in the market without corresponding debit, and the demand with penalties on the firms was upheld; the individual penalties were sustained but reduced on the facts. The process of reducing the gauge of copper wire did not create a new and distinct commodity, so it was not manufacture in law, and the duty and penalty against that unit were set aside. The note states that wrongful retention of Modvat credit attracts recovery and deterrent penalty, while mere processing that does not result in a new product does not trigger excise liability. en-us Fri, 08 Dec 2000 00:00:00 +0530 Thu, 15 Dec 2011 15:49:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=95874 Modvat credit taken on duty-paid copper wire rods had to be reversed when the inputs were sold in the market without corresponding debit, and the demand with penalties on the firms was upheld; the individual penalties were sustained but reduced on the facts. The process of reducing the gauge of copper wire did not create a new and distinct commodity, so it was not manufacture in law, and the duty and penalty against that unit were set aside. The note states that wrongful retention of Modvat credit attracts recovery and deterrent penalty, while mere processing that does not result in a new product does not trigger excise liability. Case-Laws Central Excise Fri, 08 Dec 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=95874