Modvat credit inadmissibility on inputs: chlorine used to make exempt bleach liquor is not eligible for input credit.

Admissibility of Modvat credit is denied for the portion of chlorine used in producing bleach liquor that is fully exempt and cleared for home consumption; such bleach liquor cannot be treated as waste for input-credit purposes, the Board accepted the conference recommendation to disallow credit on that portion, directs recovery of wrongly availed credits, and requires field formations and trade interests to be informed.

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