1997 (7) TMI 375

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....a, DR, for the Respondent. [Order]. - The appellants are engaged in the manufacture of hand tools falling under Chapter Heading 82 of the Central Excise Tariff Act, 1985. They had exported a consignment of hand tools to Germany under different AR 4s during the period ranging from 27-2-1989 to 29-5-1989. Since the foreign buyers refused delivery of the goods exported by the appellants, the sa....

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....as rejected by the lower authorities on the ground that since the re-imported goods were final products, even if they did not conform to the quality or specifications prescribed by their buyers, their character does not change from final products to inputs and since Modvat credit can be availed only on inputs, the credit of Rs. 1,22,578.74 p. was wrongly taken and subsequently rightly reversed by ....

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....o the appellants. 5. Coming to the merits of the matter, it is observed that the re-imported goods in this case were defective and damaged final products which character will not alter. In other words, final products merely by virtue of being defective or damaged, cannot turn into inputs once again. The plea of the learned Counsel that the re-imported hand tools were remelted and made afre....