https://www.taxtmi.com/caselaws?id=51458 Defective, obsolete or rejected inputs found unusable during manufacture and cleared as scrap did not require reversal of Modvat credit or payment of duty at the final-product rate, because Rule 57D protected credit for waste, refuse or by-products arising in manufacture. The department could not re-characterise such scrapped items as usable inputs once they were rejected in the production process and duty had been paid on scrap clearance. Records and returns disclosed the clearances, so suppression or misdeclaration was not established and the extended period of limitation was unavailable. The demands were therefore set aside on merits and limitation. en-us Fri, 18 Oct 2002 00:00:00 +0530 Fri, 24 Sep 2010 18:31:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51458 Defective, obsolete or rejected inputs found unusable during manufacture and cleared as scrap did not require reversal of Modvat credit or payment of duty at the final-product rate, because Rule 57D protected credit for waste, refuse or by-products arising in manufacture. The department could not re-characterise such scrapped items as usable inputs once they were rejected in the production process and duty had been paid on scrap clearance. Records and returns disclosed the clearances, so suppression or misdeclaration was not established and the extended period of limitation was unavailable. The demands were therefore set aside on merits and limitation. Case-Laws Central Excise Fri, 18 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51458