1998 (7) TMI 168

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..... he Revenue is whether on the defective motor vehicle parts received by the respondents herein after payment of duty by the consignee and returned to the respondents for removing the defects Modvat credit can be taken or not. Original authority denied the Modvat credit on the ground that this does not amount to process of manufacture and hence no Modvat credit can be taken. On appeal before the low .....

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..... reading and electroplating of the studs. These process he submits amount to process of manufacture in view of Section Note 6 to Section XVII of the Schedule to the Central Excise Tariff Act, 1985 which for better appreciation is reproduced below :- 6. In respect of goods covered by this Section, conversion of an article which is incomplete or unfinished but having the essential character of the .....

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..... sable as motor vehicle parts, the respondents have to undertake process of rethreading and electroplating. I am, therefore, inclined to agree with the submission of the learned Advocate for the respondents that in view of Section Note 6 of Section XVII of the Central Excise Tariff Act, the processes undertaken by the respondents amount to process of manufacture. Therefore, the Modvat credit has be .....

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