1998 (8) TMI 351

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....tered Accountant, for the Respondents. [Order]. -  The Commissioner of Central Excise, Mumbai - V has filed this appeal against the impugned order captioned above of the Commissioner of Central Excise (Appeals) Mumbai. The Respondents manufacture goods falling under Chapter 73 and 87 of the Central Excise Tariff Act, 1985 and are availing of Modvat credit under Rule 57A of Central Excis....

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....m by the customers. 2. Shri K.L. Ramteke, the ld. DR pointed out that unless it is proved that the rejected goods are, infact used in the manufacture of final products in a process amounting to manufacture, credit of duty under Rule 57A will not be available. Here the respondents are receiving the goods for repairs only which will not amount to manufacture. Therefore they are not entitled ....

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.... the duty paid at the time of first clearance and while clearing the returned goods duty will be debited at the same rate. The learned Counsel also pointed out that even in the grounds of appeal it has been stated that there was a declaration of the returned goods by the respondents. In such a situation, it was urged, that the ratio of the Tribunal judgment in the case of Alcobex Metals Ltd. v. Co....

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....ed by process and flattened thereafter to be re-made giving them the proper shape for utilisation and any such process would amount to the process of manufacture which answers the ground raised by the department in their appeal. 4. On a careful consideration of the submissions made by both sides, I find lot of force in the submissions made by the learned Counsel which need to be accepted. ....