https://www.taxtmi.com/caselaws?id=104216 Defective HRP coils returned by customers after reversal of the earlier Modvat credit were treated as inputs in the manufacturer's hands for Rule 57A, because the coils had been duty-paid, returned as defective, and remelted and reprocessed into fresh final products. Applying the same material facts as an earlier Bench decision and the Larger Bench ruling on returned defective goods, the credit was held admissible. Once Modvat credit was allowed, the basis for penalty under Rule 173Q fell away, and the penalty was not sustainable. en-us Fri, 10 May 2002 00:00:00 +0530 Tue, 28 Feb 2012 12:27:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104216 Defective HRP coils returned by customers after reversal of the earlier Modvat credit were treated as inputs in the manufacturer's hands for Rule 57A, because the coils had been duty-paid, returned as defective, and remelted and reprocessed into fresh final products. Applying the same material facts as an earlier Bench decision and the Larger Bench ruling on returned defective goods, the credit was held admissible. Once Modvat credit was allowed, the basis for penalty under Rule 173Q fell away, and the penalty was not sustainable. Case-Laws Central Excise Fri, 10 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104216