https://www.taxtmi.com/caselaws?id=96075 Modvat credit on duty-paid defective goods returned for reprocessing was not sustainable where the reprocessing did not amount to manufacture, because excise duty attaches only to manufacture and the credit could not be retained or utilised against such non-manufacturing activity. The tribunal also held that the debit entry in the RG23A register was unnecessary in that situation and upheld disallowance of the credit. Penalty was nevertheless set aside because the assessee acted openly, did not suppress the movement or reprocessing of the goods, and relied on a bona fide understanding supported by a Board circular on returned defective goods. en-us Tue, 27 Feb 2001 00:00:00 +0530 Sat, 17 Dec 2011 11:09:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96075 Modvat credit on duty-paid defective goods returned for reprocessing was not sustainable where the reprocessing did not amount to manufacture, because excise duty attaches only to manufacture and the credit could not be retained or utilised against such non-manufacturing activity. The tribunal also held that the debit entry in the RG23A register was unnecessary in that situation and upheld disallowance of the credit. Penalty was nevertheless set aside because the assessee acted openly, did not suppress the movement or reprocessing of the goods, and relied on a bona fide understanding supported by a Board circular on returned defective goods. Case-Laws Central Excise Tue, 27 Feb 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96075