Modvat credit reversal required where inputs are used in exempted goods to prevent irregular credit availment. Manufacturers may claim input Modvat credit generally, but credit on inputs used in exempted products must be debited in the RG-23A register before removal of those exempted goods; failure to reverse such credit has resulted in irregular availment, and field formations are instructed to enforce the earlier circular's reversal procedure to prevent revenue loss.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Modvat credit reversal required where inputs are used in exempted goods to prevent irregular credit availment.
Manufacturers may claim input Modvat credit generally, but credit on inputs used in exempted products must be debited in the RG-23A register before removal of those exempted goods; failure to reverse such credit has resulted in irregular availment, and field formations are instructed to enforce the earlier circular's reversal procedure to prevent revenue loss.
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