https://www.taxtmi.com/caselaws?id=52502 Returned export goods re-entered into the factory for re-processing after rectification of packing defects did not justify fresh duty recovery merely because they had earlier been cleared under bond. The chapter note supported the view that re-packing or re-processing amounting to manufacture attracted duty only on the manufactured quantity, with the remainder treated as processing loss. Because any duty on the returned goods was eligible for Modvat credit under Rule 57E, the demand was revenue neutral. The rejection of credit eligibility by the lower authority was unsustainable, and the duty demand was held not maintainable. en-us Tue, 23 Dec 2003 00:00:00 +0530 Wed, 06 Oct 2010 11:46:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52502 Returned export goods re-entered into the factory for re-processing after rectification of packing defects did not justify fresh duty recovery merely because they had earlier been cleared under bond. The chapter note supported the view that re-packing or re-processing amounting to manufacture attracted duty only on the manufactured quantity, with the remainder treated as processing loss. Because any duty on the returned goods was eligible for Modvat credit under Rule 57E, the demand was revenue neutral. The rejection of credit eligibility by the lower authority was unsustainable, and the duty demand was held not maintainable. Case-Laws Central Excise Tue, 23 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52502