2001 (1) TMI 319

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Order]. -  The appeal itself is taken up for disposal. 2. The respondent to this appeal re-imported a consignment of dies which it had exported earlier, the buyer abroad having refused to accept it as being defective. 3. The goods were cleared after paying customs duty including additional duty of customs. On receipt of the goods in its factory, the appellant took Modvat credit o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o avail which it has been granted permission. The decision of the Tribunal in Orissa Extrusions Ltd. v. CCE - 1998 (104) E.L.T. 42 and M/s. Sigma Paints v. CCE - 1994 (69) E.L.T. 779 are cited in support of the ground that finished goods cannot be inputs. The second decision has to be distinguished on facts, because the Tribunal had found that reconditioning of the goods in that case did not amoun .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sion. Therefore, where a manufacturer converts defective final product earlier cleared by him into such products not defective by a process of manufacture, as it is understood in law, such defective finished goods would be inputs for him. There is no allegation in the case before me that the activity undertaken by appellant did not amount to manufacture. 6. The appeal is accordingly allowed .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X