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<h1>Tribunal Upheld Disallowance of Modvat Credit on Inputs Used in Manufacturing</h1> <h3>XLO INDIA LTD. Versus COMMISSIONER OF C. EX., AURANGABAD</h3> XLO INDIA LTD. Versus COMMISSIONER OF C. EX., AURANGABAD - 1999 (113) E.L.T. 246 (Tribunal) The department disallowed Modvat credit on inputs used in manufacturing sub-assemblies, considering them as finished products. The tribunal held that there was no irregularity in the appellant's Modvat credit availment, except for a technical lapse, and sustained the penalty imposed. The appeal was disposed of accordingly.