2003 (12) TMI 183

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..... encee M/s. E. Merck (I) Ltd. for export under Bond. The consignment could not be exported due to packing defects and was received back in the factory under the provisions of Rule 173M and after rectification of the defects cleared for home consumption under invoice dated 15-10-1999. The quantity under Export was 78,400 strips and 500 strips of samples while quantity cleared on duty was 77,760. Qua .....

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..... hich is not being questioned. (c)        The Larger Bench in the case of M/s. Tin Manufacturing Company [2000 (119) E.L.T. 290] have held if defective duly paid metal containers are received back and re-made into raw metal containers which meet the specifications, then such defective Tin Containers would be eligible inputs and duty paid on such containers would .....

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..... t route, by declaring the defectively packed medicines as inputs. No penalty for not filling the Modvat route of non-declaration can therefore be arrived at in this case. This plea of Rule 57E(2) credit eligibility was rejected by the lower authority without any basis. Appeal is to be allowed on this ground itself. 4. Consequently the orders are set aside and appeal allowed.  
Case laws .....

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