https://www.taxtmi.com/caselaws?id=99777 Modvat credit is available for duty-paid defective final products returned by buyers where they are used as inputs to remake fresh marketable goods. Cleaning, heating, forming, quenching, tempering, testing and related operations can amount to manufacture when they transform unusable rejected goods into commercially distinct products meeting required specifications. The relevant test is whether the reprocessed goods differ from the returned defective goods and acquire marketability and usability. Where that transformation occurs, the returned goods may be treated as inputs under Rule 57A, and the reprocessing falls within manufacture under Section 2(f) read with the applicable tariff note. en-us Mon, 17 Jul 2000 00:00:00 +0530 Mon, 30 Jan 2012 11:08:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99777 Modvat credit is available for duty-paid defective final products returned by buyers where they are used as inputs to remake fresh marketable goods. Cleaning, heating, forming, quenching, tempering, testing and related operations can amount to manufacture when they transform unusable rejected goods into commercially distinct products meeting required specifications. The relevant test is whether the reprocessed goods differ from the returned defective goods and acquire marketability and usability. Where that transformation occurs, the returned goods may be treated as inputs under Rule 57A, and the reprocessing falls within manufacture under Section 2(f) read with the applicable tariff note. Case-Laws Central Excise Mon, 17 Jul 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99777