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<h1>CEGAT Upholds Duty Demand on Inputs for Exempt Goods</h1> The Appellate Tribunal CEGAT, Mumbai upheld the demand of duty on inputs used in manufacturing finished goods exempted from duty. The Tribunal rejected ... Modvat The Appellate Tribunal CEGAT, Mumbai upheld the demand of duty on inputs used in the manufacture of finished goods exempted from duty by Notification Nos. 85 & 86 dated 11-9-1991. The appeal was filed against the confirmation of this demand by the Commissioner of Central Excise (A), Mumbai. The Tribunal rejected the appeal, citing the Allahabad High Court judgment that Modvat credit must be reversed when the final product becomes exempted, even if the credit was taken before the exemption.
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