TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether Modvat credit was admissible on the duty-paid raw materials used for manufacture of 7ADCA at a job-worker's unit and thereafter used in the manufacture of the final product, and whether the demand, penalty and withdrawal of permission were sustainable.
Analysis: The declarations were filed in advance, the Department was kept informed at every stage, and permission under Rule 57F(2) was obtained for direct movement of inputs to the job-worker's factory and receipt of 7ADCA back at the main factory. The materials were accounted for through the prescribed documents and registers, and the entire quantity of declared inputs was used in the manufacture of the intermediate product, which in turn was used in the manufacture of the final dutiable goods. The scheme permits raw materials to be sent to a job-worker for conversion into an intermediate product, and credit cannot be denied merely because the intermediate product itself is marketable or because there was some procedural deviation, so long as the substantive requirements are met.
Conclusion: Modvat credit was admissible, and the demand, penalty and withdrawal of permission were not sustainable.
Ratio Decidendi: Where duty-paid inputs are substantially and verifiably used in the manufacture of an intermediate product that is in turn used in the manufacture of the final dutiable product, Modvat credit cannot be denied for technical or procedural non-compliance if substantive compliance with the scheme is established.
TaxTMI 
TaxTMI 
