https://www.taxtmi.com/caselaws?id=50885 Rule 57D permits Modvat credit where inputs are contained in waste, refuse or by-product arising during manufacture, or where inputs become waste during the course of manufacture of the final product; it does not cover inputs found defective and rejected before use. The record showed that the adjudicating authority had treated all disputed watch parts as defective before use without examining whether specific items became waste during assembly or handling in manufacture. The disallowance and penalty were set aside, and the matter was remanded for de novo adjudication after the appellants were allowed to explain the records and produce evidence on shortages and destruction. en-us Mon, 01 Oct 2001 00:00:00 +0530 Sat, 18 Sep 2010 11:46:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50885 Rule 57D permits Modvat credit where inputs are contained in waste, refuse or by-product arising during manufacture, or where inputs become waste during the course of manufacture of the final product; it does not cover inputs found defective and rejected before use. The record showed that the adjudicating authority had treated all disputed watch parts as defective before use without examining whether specific items became waste during assembly or handling in manufacture. The disallowance and penalty were set aside, and the matter was remanded for de novo adjudication after the appellants were allowed to explain the records and produce evidence on shortages and destruction. Case-Laws Central Excise Mon, 01 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50885