9911796707
TMI Blog2000 (7) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... onsultant for M/s. Coventry Spring Engineering Co. Ltd. submits that they are engaged in the manufacture of Springs which were originally cleared by them on payment of duty. These Springs were found defective by their buyers and as such, were returned to them on payment of duty. They have taken the Credit of the said Duty paid by their suppliers on the rejected and returned goods, inasmuch as the same have been taken as inputs in their RG-23A, Part-I register. He also submits that thereafter, the goods were cleaned and stripped of paints and then the same were heated in the Heating Furnace at a temperature ranging between 850o to 1050o Ceritigrades and soaked in this heat for 30 to 90 minutes. After heating, it is sent to the Forming Mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned S.D.R. appearing for the Revenue submits that the final product has already been cleared from the appellants factory on payment of duty. If the goods are found defective; there are other provisions of law under the Central Excise under which the goods can always be returned back to the appellants factory and after reprocessing, re-making etc., the same can be cleared without payment of duty, subject to observance of certain procedural requirements. As such, he submits that there is no justification for availing the MODVAT Credit of Duty paid on the final product by the receiver of the same, when the goods are returned back to the appellants factory. 5. He also submits that it is the Springs which were originally cleared from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by them, no doubt amounts to manufacture in terms of Section 2(f) read with Section Note (6) of Section-XVI of the Tariff. I also find that in the said Larger Bench decision, the Tribunal has taken note of the Circulars issued by the Board. It was observed by the Larger Bench that though the Circular was issued in the context of metal products which are melted for the manufacture of new products, the position in the case of metal containers which are dismantled and taken back to the original stage of metal sheets and then re-manufactured to new metal containers, is not indifferent. Accordingly, the Bench observed that the assessees would be entitled to the duty paid on the defective containers used in the manufacture of new containers as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods received back by the assessee, is available. The Assistant Commissioner in his impugned Order has observed that the rejected Motor Vehicle Parts have only been re-conditioned by the appellants by some minor processes and have not been converted into new Motor Vehicle Parts and as such, no manufacturing process has taken place. The appellants in their Appeal Memo have contended that the processes undertaken by them for making the final product out of the rejected product, satisfy the definition of manufacture in terms of Section 2(f) of the Central Excise Act, 1944 i.e. any process incidental or ancillary to the completion of the manufactured products tantamounts to manufacture; that there is no revenue loss to the exchequer; that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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