9911796707
TMI Blog1996 (6) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of manufacture alongwith fresh batches for manufacture of paints and rubber chemicals. The lower authorities have denied the benefit of Modvat credit procedures in respect of duty paid on defective paints and rubber chemicals on the ground that no manufacture from the aforesaid input has taken place while converting the same into the same type of final product namely paints and rubber chemicals. This view by the lower authorities was upheld by the Tribunal in the Order No. A-1302/Cal/1995, dated 11-12-1995. In coming to the aforesaid finding, case-law cited by the applicants/appellants herein were discussed. The finding of the Tribunal in the aforesaid order dated 11-12-1995 are given in Paras 5 and 6 of the said order which are reproduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of reprocessing/recycling of rejected and returned finished products was correct in law and in conformity with Section 2(f) of CESA, 1944. 2. Whether the ld. CEGAT-ERB has not erred in holding that rejected and returned duty paid finished goods subjected to process of blending/recycling in normal plant operation alongwith fresh inputs thereby losing original identity, do not qualify as inputs used in or in relation to manufacture of final product within the meaning of Rule 57A of Central Excise Rules, 1944. 3. Whether ld. Appellate Tribunal s finding that CEGAT decisions reported in 1995 (75) E.L.T. 823 and 1993 (68) E.L.T. 146 are distinguishable having different connotations and have no applicability in the instant case, without a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It is now common place to say that whether a `manufacture is involved or not is dependent upon the facts and circumstances in each case. Important point to be kept in view is before a manufacture can be said to have taken place is that an input has been converted by a process or a series of processes into a new product having a different name, character or use. In the present case, defective paints and rubber chemicals (inputs) have been converted into fresh paints and rubber chemicals. It cannot be said ex facie that any new product has come into existence as a result of the process undertaken by the applicants/appellants Analogy from defective ingots to ingot, referred to in the case of Alcobex Metals Ltd. v. C.C.E. [1993 (68) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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