2000 (9) TMI 772 - AT - Central Excise

Summary

The appeal was against the disallowance of Modvat credit on returned defective goods. The Commissioner (Appeals) disallowed the credit, citing previous decisions. The appellant argued based on previous decisions that the returned goods were eligible inputs. The Tribunal agreed, stating that the process undertaken on the defective goods amounted to a manufacturing process. The appeal was allowed, and the appellant was eligible for the Modvat credit on the returned defective goods.