https://www.taxtmi.com/caselaws?id=52569 Modvat credit was admissible on adhesives originally cleared as final products and later returned by the trader as rejected goods, because the returned goods were received under proper invoice, were not re-cleared as such, and were instead used as inputs in manufacturing a different adhesive product cleared on payment of duty. On these facts, the returned goods assumed the character of inputs for the subsequent manufacture, and the restriction relied on by the department did not justify denial of credit. The disallowance was therefore unsustainable. en-us Tue, 18 Nov 2003 00:00:00 +0530 Wed, 06 Oct 2010 15:45:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52569 Modvat credit was admissible on adhesives originally cleared as final products and later returned by the trader as rejected goods, because the returned goods were received under proper invoice, were not re-cleared as such, and were instead used as inputs in manufacturing a different adhesive product cleared on payment of duty. On these facts, the returned goods assumed the character of inputs for the subsequent manufacture, and the restriction relied on by the department did not justify denial of credit. The disallowance was therefore unsustainable. Case-Laws Central Excise Tue, 18 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52569