1996 (8) TMI 306

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....ondent. [Order]. -  The issue in the appeal relates to the eligibility of Modvat credit in respect of watch straps which are received back by the respondents and re-processed to different sizes. 2. The learned JDR has pleaded that respondents' notified finished product is watch straps. Watch straps were cleared to the customers M/s. Titan Industries Ltd. and some of them had bee....

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.... Collector and the Assistant Collector is of the view that the finished products should not be treated as an input. 4. I observe that this is a slightly unusual situation. The product which has been cleared from the factory has been returned for being made into a product of different sizes of the same category. It is not under dispute that the goods which had been cleared on payment of dut....

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....sizing the product. There is nothing in law to say that this could not be done and there is also no rule that this activity cannot allowed to be done. The provisions of rules in this regard should be so interpreted in the context of Modvat that while the purpose of grant of Modvat is advanced there is at the same time no danger to the revenue. In the present case the goods received back are notifi....