https://www.taxtmi.com/caselaws?id=54319 Modvat credit is unavailable on inputs rejected before they are issued for manufacture, because such store rejection never enters the manufacturing stream and the inputs are not used in the final product; denial of credit on this ground was upheld. By contrast, inputs issued for manufacture and rejected during testing or production are treated as having entered the manufacturing process, so credit cannot be denied merely because they were ultimately defective; credit on line rejection was upheld, and no penalty was imposed. en-us Wed, 30 Mar 2005 00:00:00 +0530 Tue, 19 Oct 2010 13:31:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54319 Modvat credit is unavailable on inputs rejected before they are issued for manufacture, because such store rejection never enters the manufacturing stream and the inputs are not used in the final product; denial of credit on this ground was upheld. By contrast, inputs issued for manufacture and rejected during testing or production are treated as having entered the manufacturing process, so credit cannot be denied merely because they were ultimately defective; credit on line rejection was upheld, and no penalty was imposed. Case-Laws Central Excise Wed, 30 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54319