7th amendment to Excise Rules - Modvat and classification of goods

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....r publication in the Official Gazette. 2. In the said rules, in rule 57D, for sub-rule (2), the following sub-rule shall be substituted namely : - "(2) Credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that any intermediate products have come into existence during the course of manufacture of final products or such inputs are used in the manufacture of capital goods as defined in rule 57Q and that such intermediate products or capital goods, as the case may be, are for the time being exempt from the whole of the duty of excise leviable thereon or chargeable to `nil' rate of duty : Provided that such intermediate products are used within the factory of production in the manufacture of a ....

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....; or (iii) removing the same after payment of duty for home consumption. Provided that the waste, if any, arising in the course of such operation is also returned to the said factory; (b) for the purposes of manufacture of intermediate products necessary for the manufacture of the final products and return the said intermediate products to his factory, for, - (i) further use in the manufacture of the final product; or (ii) removing the same without payment of duty under bond for export; or (iii) removing the same after payment of duty for home consumption. Provided that the waste, if any, arising in the course of such operation is also returned to the said factory; Provided further that the said waste need not be returned to the sai....