Manufacturer can use credit for goods made on behalf of loan licensee for duty payment. Tribunal affirms Modvat credit use.

The Appellate Tribunal CEGAT, Mumbai held that a manufacturer can utilize credit earned for goods manufactured on behalf of a loan licensee for duty payment on goods manufactured by themselves. The Tribunal dismissed the appeal, affirming the respondents' entitlement to use the Modvat credit irrespective of its source.

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The Appellate Tribunal CEGAT, Mumbai ruled that a manufacturer can use credit earned for goods manufactured on behalf of a loan licensee for payment of duty on goods manufactured by themselves. The Tribunal held that instructions from the board did not prevent this utilization of credit. The appeal was dismissed as the respondents were entitled to use the Modvat credit regardless of its origin.

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